The U.S. Department of Justice has charged active-duty Army soldier Gannon Ken Van Dyke over alleged Polymarket trades tied to the capture of Nicolás Maduro. According to sources from CBS News, Van Dyke, 38, was arrested on Thursday after allegedly betting on Maduro's removal from office before news of the raid was made public. The DOJ accused him of making more than $400,000 from trades linked to Venezuela and Maduro-related outcomes on Polymarket. As per CBS News, Van Dyke was involved in the planning and execution of the operation to capture Maduro, making this a particularly serious case of insider trading. Federal investigators believe U.S. Army Master Sgt. Gannon Ken Van Dyke made bets of more than $33,000 on the prediction market Polymarket within hours of President Trump's announcement in January that Maduro had been captured.
According to the latest indictment unsealed Thursday in the Southern District of New York, Van Dyke allegedly created a Polymarket account and began trading on markets linked to Venezuela. He placed 13 bets and spent more than $33,000 in total, with the most significant bet of $32,537 on the likelihood that Maduro would be "out by January 31, 2026." The bets included markets on whether Maduro would be out by the end of January and when the U.S. would invade Venezuela. As reported by CBS News, Van Dyke later allegedly withdrew most of the proceeds from those bets later on January 3, the indictment says. The trades were particularly significant because they occurred within hours of President Trump's announcement in January that Maduro had been captured. Three additional bets were made via the same Polymarket account: a $1,000 wager on the U.S. invading Venezuela by Jan. 31; a $250 wager that Mr. Trump would invoke the War Powers Act against Venezuela by Jan. 31; and a $146 wager that U.S. forces would land in Venezuela by the end of the month.
According to CBS News, Van Dyke faces charges that include 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. The charges were unsealed Thursday in the Southern District of New York. The Commodity Futures Trading Commission also filed a civil complaint in a parallel case, seeking disgorgement, restitution, and civil penalties tied to the alleged trading activity. As per CBS News, U.S. Attorney Jay Clayton stated that "Prediction markets are not a haven for using misappropriated confidential or classified information for personal gain," calling Van Dyke's actions "clear insider trading." U.S. Attorney in the Southern District of New York Jay Clayton said in a press release that "The defendant allegedly violated the trust placed in him by the United States Government by using classified information about a sensitive military operation to place bets on the timing and outcome of that very operation, all to turn a profit."
As reported by CBS News, FBI Director Kash Patel stated that "Any clearance holders thinking of cashing in their access and knowledge for personal gain will be held accountable." CFTC Chair Michael Selig said Van Dyke "was entrusted with confidential information" and took action that put national security and service members at risk. Polymarket CEO Shayne Coplan addressed the issue in a "60 Minutes" interview last year, stating "I think that people going and having an edge to the market is a good thing," but emphasizing the need for stringent curation of such activities. Polymarket said in a statement on X: "When we identified a user trading on classified government information, we referred the matter to the DOJ & cooperated with their investigation." "Insider trading has no place on Polymarket. Today's arrest is proof the system works," the company said. President Trump addressed the case during an unrelated Oval Office event, telling reporters he hadn't heard about the alleged betting but would look into it. "That's like Pete Rose betting on his own team," Trump said, referring to the MLB legend who was banned from the sport for gambling. Trump has defended Rose, saying he would issue a posthumous pardon, and expressed concerns about prediction markets, stating "The whole world, unfortunately, has become somewhat of a casino."
