Federal authorities have arrested Gannon Ken Van Dyke, a 38-year-old U.S. Army Special Forces soldier, accusing him of using classified information to make more than $400,000 through Polymarket bets tied to the operation that led to the capture of former Venezuelan leader Nicolás Maduro.
Van Dyke faces three counts under the Commodity Exchange Act, each carrying up to 10 years in prison, along with additional charges of wire fraud and conducting an unlawful monetary transaction.
Prosecutors allege he used insider knowledge from his role in “Operation Absolute Resolve” to place over $33,000 in bets on prediction markets before President Donald Trump publicly announced Maduro’s capture in January. According to an indictment unsealed Thursday in New York, those trades ultimately generated nearly $410,000 in profits.
Acting Attorney General Todd Blanche said classified information is entrusted to service members strictly for mission purposes and not for personal enrichment, emphasizing that federal laws apply fully to emerging prediction markets. FBI Director Kash Patel also warned security clearance holders against exploiting privileged information for profit.
When asked about the case, Trump said he would review the matter, while criticizing the growing culture of betting tied to global events.
Maduro and his wife, Cilia Flores, were captured during a U.S. operation in Caracas on January 3 and remain detained in New York while facing cocaine-trafficking conspiracy charges, which they have denied.
Authorities say Van Dyke, who was stationed at Fort Bragg, had access to nonpublic classified details about the mission from early December through early January. Prosecutors allege he opened a Polymarket account on December 26, 2025, placed at least 13 “yes” wagers on U.S. involvement in Venezuela-related events, and later moved his profits through a foreign crypto wallet into a new brokerage account.
Investigators say he withdrew most of his winnings on the day of the operation.
U.S. Attorney Jay Clayton called the alleged scheme a clear example of insider trading, accusing Van Dyke of abusing government trust by betting on the outcome of a military mission he helped execute.
It remains unclear whether Van Dyke has secured legal counsel.