An active-duty US Army soldier has been indicted on charges that he used confidential information to place more than $33,000 in bets on Polymarket regarding the US military operation in Venezuela, according to the US Department of Justice. The indictment, unsealed in Manhattan federal court, names Gannon Ken Van Dyke, who was stationed at Fort Bragg, and accuses him of unlawful use of confidential information for personal gain, commodities and wire fraud, and theft of nonpublic government information.
The case stems from a series of well-timed wagers on Polymarket, a prediction market platform, that correctly anticipated that Venezuelan president Nicolás Maduro would be “out” and that the US military would “show up in Venezuela” by January 31st. One anonymous bettor netted approximately $410,000 in winnings, though the indictment does not directly link that figure to Van Dyke. The operation, which took place on January 3rd, involved special operations forces, and Van Dyke is alleged to have placed his bets in the days leading up to the attack.
According to the DOJ, after the proceeds were deposited into his account, Van Dyke moved the majority of his profits to an offshore cryptocurrency wallet before transferring them to a new brokerage account. He also allegedly attempted to delete his Polymarket account and change the registered email address for his cryptocurrency exchange account to conceal his tracks. The indictment states that Van Dyke “decided to use that classified information to place trades on a prediction market platform for his personal profit” and subsequently tried to obscure the source of the funds and his connection to the accounts.
Polymarket responded to the arrest by stating, “Insider trading has no place on Polymarket,” and calling the arrest “proof the system works.” The platform has faced criticism for enabling betting on sensitive events, with prior instances of insider trading prosecutions in other countries, such as Israel.
US President Donald Trump commented on the broader trend, saying that the “whole world, unfortunately, has become somewhat of a casino.” The case is ongoing, and more details about Van Dyke’s role in the January 3rd attack are expected to emerge as the legal proceedings continue.
Editorial Notes