A US soldier who allegedly made more than $400,000 by betting on the arrest of Venezuela’s former president Nicolás Maduro has been charged over the use of classified information.
Authorities say the soldier used secret military details to place bets before the operation was made public.
The US Department of Justice (DOJ) confirmed that Master Sgt. Gannon Ken Van Dyke, an active-duty special forces soldier stationed at Fort Bragg, traded on a prediction market called Polymarket during a covert mission known as Operation Absolute Resolve.
Prosecutors say he was directly involved in the planning of the operation that led to Maduro’s arrest in Caracas on 3 January.
“Gannon Ken Van Dyke allegedly betrayed his fellow soldiers by utilizing classified information for his own financial gain,” said FBI assistant director James C Barnacle Jr.
According to the DOJ, Van Dyke opened a Polymarket account in late December 2025 and began betting on whether Maduro would be removed from power. He is accused of making around 13 trades before and during the operation.
He allegedly risked more than $33,000 and later earned about $400,000 in profit after Maduro was captured.
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Prosecutors say the trades were based on sensitive, nonpublic information he had access to through his role in the mission.
US Attorney Jay Clayton said prediction markets are not a loophole for illegal activity.
“Those entrusted to safeguard our nation’s secrets have a duty to protect them and our armed service members, and not to use that information for personal financial gain,” he said.
The DOJ also alleges Van Dyke moved his winnings through cryptocurrency accounts in an attempt to hide the money trail.
He now faces several charges, including wire fraud, commodities fraud, and theft of government information. If convicted, he could face a long prison sentence.
Polymarket said it reported the activity to authorities and cooperated with the investigation.
“When we identified a user trading on classified government information, we referred the matter to the DOJ & cooperated with their investigation,” the company said.
“Insider trading has no place on Polymarket. Today’s arrest is proof the system works.”