A U.S. special forces soldier involved in a covert operation to capture Venezuelan President Nicolás Maduro has been arrested and indicted after allegedly using classified information to place profitable bets on the prediction market Polymarket. Authorities say the soldier made more than $400,000 by wagering on the outcome of the military operation while still actively involved in its planning and execution.
According to federal investigators, the soldier, identified as Gannon Ken Van Dyke, participated in “Operation Absolute Resolve,” the classified mission that resulted in Maduro’s capture. Prosecutors allege that before the operation became public, he used insider knowledge about the planned raid to place multiple bets on Polymarket predicting that U.S. forces would intervene in Venezuela and remove Maduro from power. His wagers reportedly began in late December and continued into January, just before and during the unfolding of the operation.
Officials claim Van Dyke opened a Polymarket account and placed around a dozen trades totaling tens of thousands of dollars, ultimately generating hundreds of thousands in profits after the operation succeeded. Authorities further allege that he attempted to conceal his involvement by obscuring the origin of his account and moving winnings through cryptocurrency channels.
The U.S. Department of Justice has charged him with multiple offenses, including wire fraud, violations of the Commodity Exchange Act, and unlawful use of confidential government information. Prosecutors argue that his actions represent a serious breach of trust, as he was bound by nondisclosure agreements prohibiting the use or disclosure of classified operational details for any personal gain.
Acting Attorney General Todd Blanche condemned the alleged conduct, emphasizing that military personnel are entrusted with sensitive intelligence strictly to support national security missions, not to profit from them. He noted that while prediction markets are a relatively new financial phenomenon, existing federal laws governing classified information and fraud fully apply to such platforms.
The case is being described by officials as a landmark moment for prediction markets, as they grow in popularity and attract increasing scrutiny over potential misuse of nonpublic information. Law enforcement agencies are now examining how platforms like Polymarket could be exploited by insiders with access to sensitive data, particularly in high-stakes political or military scenarios.
The arrest has intensified debate over regulation of prediction markets, with lawmakers reportedly considering new rules that would explicitly ban the use of insider or nonpublic government information for trading. Meanwhile, prosecutors say the investigation remains ongoing as they assess whether others may have been involved in similar activity.
