A U.S. special forces soldier involved in the operation targeting Venezuelan President Nicolás Maduro was arrested after investigators allege he placed bets using classified information before news of the raid became public. Master Sgt. Gannon Ken Van Dyke, a communications specialist supporting the Joint Special Operations Command (JSOC), reportedly wagered over $33,000 on a prediction market regarding Maduro’s removal, resulting in winnings exceeding $409,000.
Van Dyke’s arrest follows an indictment unsealed in the Southern District of New York charging him with unlawful use of confidential government information, theft of nonpublic government information, commodities fraud, wire fraud, and conducting monetary transactions from unlawful activity. The Justice Department confirmed Van Dyke’s involvement in planning and executing the military operation that aimed to capture Maduro.
According to court documents, Van Dyke placed bets on the Polymarket platform shortly after former President Donald Trump announced on January 3, 2026, that Maduro had been captured and flown out of Venezuela. The largest wager—approximately $32,500—predicted Maduro would be removed by January 31, 2026. Additional bets included predictions of a U.S. invasion of Venezuela and invocation of the War Powers Act against Venezuela within the same timeframe. Van Dyke allegedly withdrew most of his winnings on the same day and later sought to conceal his identity by requesting deletion of his Polymarket account.
Polymarket publicly condemned the misuse of classified information and cooperated with federal authorities during their investigation. “Insider trading has no place on Polymarket. Today’s arrest is proof the system works,” the company stated.
JSOC, headquartered at Fort Bragg, North Carolina, oversees elite units such as Delta Force and Navy SEAL Team Six. Van Dyke has served on active duty since 2008 and had held the rank of master sergeant since 2023 at the time of the alleged offense.
During an unrelated Oval Office event, former President Trump said he was unaware of the betting allegations but would look into the matter, comparing it to the scandal involving Pete Rose betting on his own team.
Why it matters
This case marks a rare instance of a U.S. military member charged with insider trading based on classified government information related to a sensitive military operation. It highlights emerging challenges in regulating prediction markets, which have been scrutinized for their potential misuse with confidential or classified data. Van Dyke’s arrest underscores ongoing efforts by federal authorities to prevent and prosecute unlawful exploitation of insider knowledge in emerging financial platforms.
Background
Prediction markets like Polymarket allow users to bet on the outcomes of real-world events, including geopolitical developments. While such platforms are relatively new, the use of nonpublic or classified information to gain financial advantage raises legal and ethical concerns reminiscent of traditional insider trading laws. This case follows prior reports of foreign nationals allegedly using classified information to place bets on similar platforms, emphasizing the difficulties of oversight in this digital space.
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