A special forces soldier involved in the rendition of former Venezuelan President Nicolás Maduro has been arrested for allegedly earning more than $400,000 by betting on Maduro's removal from power, the US Justice Department announced on Thursday.
Gannon Ken Van Dyke placed bets totaling over $33,000 on the cryptocurrency-based prediction market Polymarket, reaping approximately $409,000 in winnings. He reportedly placed the wagers just hours before US President Donald Trump announced Maduro's capture during a dramatic pre-dawn raid on the Venezuelan leader's home in Caracas.
Insider trading allegations
The bets immediately raised suspicions of insider trading, leading to a months-long investigation. Van Dyke was indicted on charges including unlawful use of confidential information for personal gain, theft of nonpublic government information, commodities fraud, wire fraud, and unlawful monetary transaction.
Shortly after Trump's announcement of "Operation Absolute Resolve," reports of unusual trading activity on Polymarket regarding Maduro's capture surfaced. In response, Van Dyke attempted to conceal his identity by requesting Polymarket delete his account, falsely claiming he had lost access to the associated email address. He also changed the email linked to his cryptocurrency exchange account to one not registered in his name.
Indictment details
The indictment states: "Rather than safeguard that information as he was obligated to do, VAN DYKE decided to use that classified information to place trades on a prediction market platform for his personal profit." It further notes that he "subsequently tried to conceal his unlawful use of classified US Government information by attempting to obscure the source of his unlawful proceeds and to disguise his connection to the accounts linked to the illicit trades."
A Polymarket spokesperson confirmed that the company referred the suspicious bets to the Department of Justice and cooperated fully with the investigation. "Insider trading has no place on Polymarket. Today's arrest is proof the system works," the spokesperson said in a statement.
FBI warning
FBI Director Kash Patel emphasized that the indictment sends a clear message: "No one is above the law, and this FBI will do whatever it takes to defend the homeland and safeguard our nation's secrets. Any clearance holders thinking of cashing in their access and knowledge for personal gain will be held accountable."
While Van Dyke's arrest marks a first for US authorities, similar cases have occurred globally. In February, an Israeli army reservist and a civilian were charged in Israel for using classified information to place bets on Polymarket.
