- Soldier allegedly used classified intel to place bets, earning $400K pre-disclosure.
- Prosecutors cite fraud and insider trading violations tied to prediction market activity.
- Funds were moved through crypto channels as authorities tracked suspicious betting patterns.
A U.S. Army special forces soldier has been charged by federal prosecutors after allegedly using classified information linked to a covert operation targeting Venezuelan President Nicolás Maduro to place bets on the prediction platform Polymarket.
Authorities claim the soldier made approximately $409,000 in profit from wagers totaling about $33,000 on the outcome of the operation before it became public. The case, unsealed in federal court, centers on allegations that the accused used nonpublic intelligence obtained during military planning to gain a financial advantage.
According to prosecutors, active-duty Master Sgt. Gannon Ken Van Dyke opened a Polymarket account in late December and placed multiple bets predicting that Maduro would be removed from power by January. The wagers were described as long-shot positions at the time they were placed. However, investigators allege Van Dyke had prior access to classified details through his role in “Operation Absolute Resolve,” a mission tied to Maduro’s capture.
The indictment outlines five criminal counts, including violations of the Commodity Exchange Act, wire fraud, and unlawful monetary transactions. Prosecutors state that Van Dyke placed 13 bets between December 27 and January 2, with his final wager occurring just hours before the operation concluded.
Movement of Funds and Investigation
Authorities allege that after securing more than $400,000 in gains, Van Dyke transferred the proceeds to a foreign cryptocurrency vault before moving the funds into an online brokerage account. Prosecutors described the transfers as an attempt to obscure the origin of the earnings.
Law enforcement attention was reportedly triggered by the scale and timing of the winnings. The Commodity Futures Trading Commission has filed a parallel civil complaint seeking restitution and financial penalties.
Operation and Court Proceedings
The military operation referenced in the case resulted in Maduro’s capture from the presidential palace in Caracas during an overnight raid. He was transferred to New York to face federal drug-trafficking charges, to which he has pleaded not guilty.
Van Dyke, who was stationed at Fort Bragg at the time, is expected to appear in court in North Carolina. No legal representation has been listed for him in court records.
Following the reports, Polymarket stated that it identified suspicious trading activity tied to confidential information and referred the matter to the Department of Justice, cooperating with the investigation. The platform has also introduced updated rules prohibiting trades based on confidential or nonpublic information, as well as participation by individuals who can influence event outcomes.
Related: Insider Trading Suspicions Grow Over Major Trades Before Trump Announcements
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