A U.S. Army Master Sergeant is facing federal charges for allegedly using classified information about a military operation to capture Venezuelan President Nicolas Maduro to place profitable bets on a prediction market.

Insider Trading Allegations

Gannon Ken Van Dyke, a Master Sergeant, has been arrested and charged with multiple federal offenses related to alleged insider trading. The charges stem from a covert military operation aimed at capturing Venezuelan President Nicolas Maduro. Law enforcement sources and a senior military official indicate Van Dyke allegedly placed over $33,000 in bets on Polymarket, a prediction market, shortly after President Trump announced the operation in January.

Profitable Bets and Winnings

These bets accurately predicted Maduro’s removal from office, resulting in winnings exceeding $409,000. The indictment, unsealed in the Southern District of New York, includes charges of unlawful use of confidential government information for personal gain, theft of nonpublic government information, commodities fraud, wire fraud, and engaging in monetary transactions from unlawful activity.

Justice Department Response

The Justice Department emphasized that prediction markets cannot be exploited for personal profit using classified or confidential information. U.S. Attorney Jay Clayton stated that Van Dyke allegedly betrayed the trust placed in him by utilizing sensitive information to place profitable bets, characterizing it as clear insider trading and a violation of federal law.

Military Background and Timing

Van Dyke, a communications specialist with Joint Special Operations Command (JSOC), has been on active duty since 2008 and achieved the rank of Master Sergeant in 2023. He was stationed at Fort Bragg, North Carolina, at the time of the alleged offenses. Prior to President Trump’s announcement on Truth Social, a Polymarket account linked to Van Dyke placed a substantial wager predicting Maduro would be out of power by January 31, 2026.

Investigation and Cooperation

Additional bets were made concerning a potential U.S. invasion of Venezuela, the invocation of the War Powers Act, and the landing of U.S. forces in the country. Following President Trump’s announcement, Van Dyke allegedly withdrew the majority of his winnings and requested Polymarket to delete his account. Polymarket identified the suspicious trading activity and cooperated fully with the Department of Justice investigation.

President Trump's Reaction

President Trump, when questioned, drew a parallel to the case of Pete Rose and expressed his disapproval of betting activities. He acknowledged the growing prevalence of betting worldwide but indicated his reservations about it.

First of its Kind Case

This case marks the first arrest of its kind for U.S. authorities, although similar charges were filed against two Israeli soldiers earlier this year for suspected use of classified information on Polymarket. Polymarket’s CEO highlighted the importance of ethical boundaries within the prediction market space.