A US soldier who participated in the January operation to capture Venezuelan President Nicolás Maduro has been arrested for allegedly making over $400,000 by betting on the politician's removal from office, federal authorities announced on Thursday.
Details of the Case
According to prosecutors, beginning in early December, the soldier, identified as Gannon Ken Van Dyke, was involved in planning the military operation to capture and depose Maduro. Between early December and early January, Van Dyke allegedly placed 13 bets on Polymarket, a popular prediction market, concerning the invasion of Venezuela by US forces and the capture of its head of state.
Van Dyke has been charged with commodities fraud, wire fraud, and unlawful use of confidential government information for personal gain, according to the Department of Justice (DoJ). If convicted, he faces up to 60 years in prison.
Official Reactions
In a news release, FBI Assistant Director in Charge James C. Barnacle Jr. condemned Van Dyke's alleged betting, calling it a betrayal to his fellow soldiers. Acting Attorney General Todd Blanche stated: "Our men and women in uniform are trusted with classified information in order to accomplish their mission as safely and effectively as possible, and are prohibited from using this highly sensitive information for personal financial gain."
FBI Director Kash Patel wrote on social media: "This involved a US soldier who allegedly took advantage of his position to profit off of a righteous military operation. Investigation ongoing."
Polymarket said in a social media statement that the company had referred a user trading on classified government information to the DoJ. "Insider trading has no place on Polymarket. Today's arrest is proof the system works," the company wrote.
Broader Context
The news came a day after three US congressional candidates were fined by another prediction market site, Kalshi, for placing bets on the outcome of their races. One of the candidates, former reality TV contestant and Virginia Senate hopeful Mark Moran, claimed he placed the wager to prove a point. Kalshi's sanctions appeared to be a move to appease lawmakers, who have been considering legislation to curtail government employees from profiting from classified information.
Speculation about political insider trading has swirled in recent weeks after well-timed wagers about the Iran war netted over $1 billion.
Presidential Comment
On Thursday evening in the Oval Office, President Donald Trump told reporters he would look into Van Dyke's arrest. "I don't know about it … that's like Pete Rose betting on his own team," he said, referring to the late baseball player banned for gambling. Trump has advocated for Rose's induction into the Hall of Fame. When asked about betting markets related to Iran, Trump replied: "The whole world unfortunately has become somewhat of a casino. I was never much in favor of it. I don't like it, conceptually, but it is what it is … it's a crazy world, it's a much different world than it was."
