Special Forces Soldier Indicted in Insider Trading Scheme

A U.S. special forces soldier has been arrested and indicted on multiple federal charges related to an alleged insider trading scheme involving the prediction market platform Polymarket. The soldier, identified as Van Dyke, is accused of illegally profiting from non-public information regarding a U.S. military operation.

Details of the Alleged Scheme

Van Dyke allegedly placed approximately $33,034 in bets on the success of a U.S. military operation aimed at removing Venezuelan President Nicolás Maduro from office. These bets reportedly generated a profit exceeding $409,000 for the soldier. The indictment states that Van Dyke’s involvement in the planning and execution of the operation provided him with access to sensitive, non-public information.

Timeline of Bets and Actions

Between December 27, 2025, and January 26, Van Dyke allegedly placed approximately 13 bets, capitalizing on his privileged knowledge of the impending raid. Following his substantial winnings, he is accused of transferring the majority of his profits to a foreign cryptocurrency vault before depositing them into a newly established online brokerage account.

Charges and Government Response

The charges against Van Dyke are extensive, including unlawful use of confidential government information for personal gain, theft of nonpublic government information, commodities fraud, wire fraud, and making an unlawful monetary transaction. U.S. Attorney for the Southern District of New York stated the case revolves around Van Dyke’s alleged use of classified information to make wagers on Polymarket.

Statements from Key Officials

President Donald Trump, when questioned about the arrest, expressed his disapproval of betting, referencing the case of Pete Rose. Acting Attorney General Todd Blanche emphasized the importance of protecting classified information, stating service members are entrusted with it for mission success and are prohibited from exploiting it for personal gain. FBI Director Kash Patel affirmed that no one is above the law and the FBI is committed to safeguarding national secrets.

Polymarket's Cooperation and Response

Polymarket has fully cooperated with the Department of Justice investigation, promptly referring the matter to authorities upon identifying a user trading on classified information. The platform also highlighted its recent implementation of enhanced market integrity rules designed to combat insider trading.

Background: Maduro Capture

The case unfolds against the backdrop of the successful capture of Nicolás Maduro and his wife, Cilia Flores, in Caracas, and their subsequent arrival in New York. This event, while separate, provides context to the alleged betrayal of trust.