A US special forces soldier involved in a covert military operation to capture Venezuela’s former leader Nicolas Maduro has been arrested after allegedly using classified information to place profitable bets on a prediction market.
The US Department of Justice said the soldier exploited sensitive, nonpublic intelligence to wager on the outcome and timing of the operation, earning more than $409,000 in illegal profits.
What the Charges Allege
Federal prosecutors have charged Gannon Ken Van Dyke, an active-duty US Army soldier stationed at Fort Bragg, North Carolina, with multiple offences including insider trading, wire fraud, commodities fraud, and unlawful use of confidential government information.
According to the DOJ, Van Dyke created an account on Polymarket in late December 2025 and placed bets linked to Venezuela and Maduro-related outcomes while possessing classified intelligence about a secret military mission known as Operation Absolute Resolve.
Officials said Van Dyke wagered more than $33,000 while in possession of sensitive information and ultimately won over $409,000 as a result of the trades.
The Military Operation Involved
US forces carried out a night-time raid on January 3, seizing Maduro and his wife, Cilia Flores, from their compound in Caracas before transporting them to New York to face weapons and drug-related charges, which they deny.
Prosecutors allege Van Dyke was directly involved in the planning and execution of the operation from at least December 8, 2025, until January 6, 2026, and had access to classified operational details throughout that period.
Why This Case Matters
The case highlights growing concerns around prediction markets and their vulnerability to insider trading, particularly when national security information is involved.
Justice Department officials said Van Dyke violated nondisclosure agreements that strictly prohibit service members from using classified information for personal gain.
“This is clear insider trading and illegal under federal law,” prosecutors said, adding that emerging digital markets are still fully subject to national security and fraud statutes.
Polymarket and Regulators Respond
Polymarket said it referred the suspicious activity to authorities after identifying trading based on classified information.
“Insider trading has no place on Polymarket,” the company said, adding that the arrest demonstrates enforcement mechanisms are working.
The Commodity Futures Trading Commission also filed a civil complaint against Van Dyke, accusing him of engaging in illegal insider trading in regulated prediction markets.
Official Reactions
Acting US Attorney General Todd Blanche said members of the armed forces are entrusted with sensitive information to protect national security, not to generate personal profit.
US Attorney Jay Clayton warned that prediction markets “are not a haven for exploiting confidential or classified government information.”
Asked about the case, Donald Trump said he was unaware of the details but expressed concern over the expansion of betting-style markets, calling the global trend “casino-like.”
What Comes Next
Van Dyke will be prosecuted in the Southern District of New York. If convicted, he could face significant prison time, fines, and permanent removal from military service.
The case is expected to fuel renewed debate in Washington over regulation of prediction markets, classified information safeguards, and the risks posed by emerging financial platforms tied to geopolitical events.
