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Special Forces soldier denies charges of profiting from classified intel
Gannon Ken Van Dyke, a 38-year-old US Army master sergeant, entered a not guilty plea on Tuesday to charges that he used non-public military information to place lucrative bets on the removal of Venezuelan President Nicolás Maduro.
Court appearance and bail conditions
Van Dyke appeared in a New York federal court, dressed in a dark suit, and responded with a firm "Not guilty, your honour" when asked to enter his plea. The judge released him on a $250,000 bond, requiring him to surrender his passport and restrict travel to parts of North Carolina, New York, and California.
His legal team now includes high-profile attorney Mark Geragos, who recently represented Sean "Diddy" Combs. Geragos told reporters outside the courthouse that the government's accusations target actions that "are not a crime" and described Van Dyke as an "American hero" with an exemplary service record.
Allegations of insider trading on prediction markets
The Department of Justice (DOJ) alleges Van Dyke used classified details from Operation Absolute Resolve-a covert mission targeting Maduro-to trade on Polymarket, a cryptocurrency-based prediction platform. Between December 27 and January 2, he placed at least 13 bets, wagering approximately $33,934 on outcomes tied to Maduro's capture and the timing of US military intervention in Venezuela.
Prosecutors claim these trades yielded over $400,000 in profits. The DOJ has charged him with unlawful use of confidential government information, theft of non-public data, commodities fraud, wire fraud, and conducting unlawful monetary transactions. This case marks the first DOJ prosecution involving insider trading on a prediction market.
Covert operation and Van Dyke's alleged role
The indictment states Van Dyke, stationed at Fort Bragg, North Carolina, had access to top-secret planning for Maduro's removal, which included airstrikes, ground intelligence networks, and a months-long military buildup in the region. However, the filing does not detail his specific duties or direct involvement in the operation.
After news broke of a high-value bet on Maduro's seizure, Polymarket flagged the activity and alerted authorities. Van Dyke allegedly attempted to conceal his identity by deleting his Polymarket account and transferring his winnings-totaling $409,881-to a foreign cryptocurrency vault. Prosecutors say he later moved the funds, including accumulated interest, to a new brokerage account.
Broader scrutiny of prediction markets
The case has intensified concerns about government officials exploiting non-public information on blockchain-based prediction platforms. Online investigators initially raised alarms in January after noticing a nearly half-million-dollar payout tied to Maduro's removal. Polymarket CEO Shayne Coplan confirmed the platform reported the suspicious activity to authorities.
In addition to the criminal charges, Van Dyke faces a civil lawsuit from the Commodity Futures Trading Commission, which also accuses him of insider trading.
Military background and next steps
Van Dyke has served in the US Army since 2008 and achieved the rank of master sergeant in the Special Forces in 2023. He remains on leave from active duty while under court supervision in North Carolina.
Geragos indicated plans to file motions challenging the indictment's validity and the court's jurisdiction. A preliminary hearing has yet to be scheduled.
