A US special forces soldier involved in a military operation targeting Venezuelan President Nicolás Maduro has pleaded not guilty to charges of misusing classified information for personal financial gain.

Soldier Arraigned in New York

Gannon Ken Van Dyke, 38, an active-duty soldier stationed at Fort Bragg, appeared in federal court in New York before Judge Margaret Garnett. He entered a plea of not guilty to multiple charges related to the alleged scheme.

First Prosecution of its Kind

This case marks the first federal prosecution involving illegal profits made through bets on a prediction market. These platforms allow individuals to wager on the outcomes of various events, including geopolitical developments.

Defense Claims Innocence

Van Dyke’s legal team, led by attorney Mark Geragos, strongly maintains his innocence. They assert that the charges are baseless and intend to vigorously challenge the allegations. Geragos stated that Van Dyke has been charged with something that is not a crime.

Details of the Alleged Scheme

Prosecutors allege that Van Dyke exploited his knowledge of the classified military operation to place bets on Polymarket, a prediction market platform. He reportedly wagered $32,000 on US involvement in Venezuela and the removal of Maduro from office by the end of January.

Significant Profits and Attempts to Conceal

These bets yielded over $400,000 in profits after the operation’s success. Authorities claim Van Dyke then transferred the funds to a foreign cryptocurrency vault and subsequently to a new online brokerage account. He allegedly requested Polymarket to delete his account after news reports highlighted the unusually successful bet.

Operation and Arrest

The indictment includes a photograph of Van Dyke taken after the operation, showing him on a ship with other soldiers. Van Dyke was arrested on Thursday night and faces charges including unlawful use of confidential government information, theft, commodities fraud, wire fraud, and unlawful monetary transactions.

Release and Next Court Date

Following his initial appearance in North Carolina on Friday, Van Dyke was released on a $250,000 bond after surrendering his passport and firearms. His next court appearance is scheduled for June 8. He is currently on leave from the military but remains affiliated.

President Trump's Reaction

President Donald Trump expressed concern about the growing trend of betting on geopolitical events, describing the world as having become a casino. He stated he was “not happy” with this trend, highlighting potential risks and ethical concerns.