US Federal authorities arrested Army Master Sergeant Gannon Ken Van Dyke on Thursday, charging him with using classified military intelligence to orchestrate a lucrative insider trading scheme on a popular prediction market. Van Dyke, 38, allegedly profited by betting on the success of the very mission he helped execute: the capture of Venezuelan President Nicolás Maduro.
An indictment unsealed in the Southern District of New York reveals that Van Dyke, a Special Forces soldier stationed at Fort Bragg, participated in the planning and execution of "Operation Absolute Resolve." Between late December 2025 and early January 2026, he allegedly used nonpublic information regarding the timing of the raid to place wagers totaling roughly $33,000 on the platform Polymarket.
The tactical knowledge proved infallible as the military operation successfully apprehended Maduro on January 3, 2026. Van Dyke’s bets, which predicted Maduro’s removal and the presence of U.S. forces in Venezuela, netted him more than $409,000 in winnings. Prosecutors claim he attempted to conceal his identity using virtual private networks (VPNs) and later moved the funds into foreign cryptocurrency vaults and a new brokerage account.
"Our men and women in uniform are trusted with classified information in order to accomplish their mission as safely and effectively as possible, and are prohibited from using this highly sensitive information for personal financial gain," said Acting Attorney General Todd Blanche in an official statement. He added that while prediction markets are a "relatively new phenomenon," federal laws protecting national security information still strictly apply.
The Federal Bureau of Investigation led the probe, which was triggered after Polymarket identified suspicious trading activity. FBI Director Kash Patel emphasised the gravity of the breach, stating that any clearance holders "thinking of cashing in their access and knowledge for personal gain will be held accountable."
Van Dyke faces five federal counts, including wire fraud, commodities fraud, and theft of government information. If convicted on all charges, he faces a maximum potential sentence of several decades in prison. The U.S. Army has referred all inquiries regarding his military status to the Department of Justice as the legal proceedings move forward in Manhattan.