The US Department of Justice arrested active-duty Army soldier Gannon Ken Van Dyke over alleged trades tied to classified military information ahead of Nicolás Maduro’s January capture. Prosecutors say he used confidential operational details to place profitable Polymarket bets and later tried to hide the funds through cryptocurrency accounts.
Van Dyke, 38, allegedly earned more than $400,000 from 13 trades linked to Venezuela, Maduro’s political future, and possible US military action. Authorities say he placed the trades after gaining access to sensitive planning details for the mission.
The case now places prediction markets, classified information, and military access under fresh legal scrutiny.
According to prosecutors, Van Dyke took part in planning and carrying out the January mission that led to Maduro’s arrest. Authorities say he had signed nondisclosure agreements that required him to protect sensitive information.
Despite those restrictions, investigators allege he opened a prediction market account in late December. Soon after, he began placing trades tied to Venezuela and Maduro’s future. The contracts reportedly included wagers on whether Maduro would leave power by the end of January. Other trades involved whether US forces would enter Venezuela.
In total, officials say Van Dyke placed 13 bets worth more than $33,000. When Maduro was captured on Jan. 3, several contracts were paid out. Prosecutors say those trades generated about $409,881 in profits. They allege the gains came from confidential knowledge of the planned operation.
After the contracts were paid out, authorities say Van Dyke tried to conceal the activity. Investigators claim he moved much of the money into foreign cryptocurrency accounts. They also say he later asked the platform to delete his account. Prosecutors viewed those steps as attempts to hide his identity and the source of the funds.
Van Dyke now faces several criminal charges. They include violations of the Commodity Exchange Act, wire fraud, and unlawful monetary transactions.
If convicted on all counts, he could face decades in prison. Separately, the Commodity Futures Trading Commission filed a civil complaint seeking penalties, restitution, and repayment of profits.
FBI Director Kash Patel said no one stands above the law. He warned that authorities would prosecute anyone who abuses national security access for personal gain.
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Polymarket said in a post on X that it identified a user trading on classified government information. The platform said it referred the matter to the DOJ and cooperated with investigators. “Insider trading has no place on Polymarket,” the company said. It added that the arrest showed the system worked.
ABC News first reported Thursday’s arrest. CNN reported last month that federal prosecutors were investigating the Maduro trade, citing a person familiar with the matter.
CNN also reported that chiefs from the securities and commodity fraud unit at the US attorney’s office in Manhattan met with Polymarket representatives last month. The allegations come as prediction market trading grows rapidly. According to the report, users now spend a few billion dollars each week on such sites.
Lawmakers in Congress have introduced more than a dozen bills this year to increase the regulation of prediction markets. Some proposals have bipartisan support and seek tougher penalties for government officials who engage in insider trading.
President Trump told reporters Thursday that he had concerns about growing betting on geopolitical events. Asked about the soldier’s charges, he said he did not know the case details.
Still, he compared the matter to Pete Rose, the late baseball player banned from the sport for gambling. “That’s like Pete Rose betting on his own team,” Trump said.
Gannon Ken Van Dyke’s arrest links classified military access, Maduro-related Polymarket trades, and alleged crypto fund transfers. Prosecutors say the Army soldier profited from confidential operation details, while regulators seek penalties and repayment. The case may intensify debate over prediction market rules and insider trading enforcement.