A US special forces soldier involved in the capture of Venezuelan President Nicolás Maduro has pleaded not guilty to charges of using classified information to make over $400,000 in illegal profits through prediction market bets. The case marks the first federal prosecution related to such bets, raising questions about the legality and ethics of trading on geopolitical events.
A special forces soldier who participated in the high-profile capture of Venezuelan President Nicolás Maduro has pleaded not guilty to charges of misusing classified information to make over $400,000 in illegal profits.
Gannon Ken Van Dyke, a 38-year-old active-duty soldier stationed at Fort Bragg, appeared in civilian attire before Judge Margaret Garnett in a New York federal court. This marks the first instance where federal prosecutors have pursued charges related to bets placed on a prediction market, a platform where individuals wager on outcomes ranging from sports events to geopolitical developments.
Van Dyke’s legal team, led by attorney Mark Geragos, has strongly defended the soldier, asserting that he is an American hero and that the charges against him are baseless. Geragos vowed to challenge the core allegations, emphasizing that Van Dyke has been charged with something that is not a crime. Following the arraignment, Van Dyke was ordered to surrender his passport and firearms and was released on a $250,000 bond. His next court appearance is scheduled for June 8.
Zach Intrater, another attorney representing Van Dyke, informed the court that the soldier is currently on leave but remains affiliated with the military. Prosecutors allege that Van Dyke played a key role in the planning and execution of the unprecedented military operation that took place in the early hours of January 3. During this operation, US soldiers successfully extracted Maduro and his wife from the presidential palace in Caracas amid intense gunfire.
Authorities claim that Van Dyke exploited his knowledge of the classified mission to place bets on Polymarket, a popular prediction market platform, in the days and hours leading up to the operation. Van Dyke reportedly placed $32,000 in bets predicting US involvement in Venezuela, including the outcome that Maduro would be out of the country by the end of January. After the operation’s success, his bets paid off handsomely, yielding over $400,000 in profits.
Prosecutors further allege that Van Dyke transferred these funds to a foreign cryptocurrency vault before moving them into a newly created online brokerage account. When news reports highlighted the unusually successful bet, Van Dyke allegedly requested Polymarket to delete his account.
The indictment includes a photograph of Van Dyke taken shortly after the operation, showing him on what appears to be the deck of a ship at sea, at sunrise, wearing US military fatigues and carrying a rifle alongside three other individuals in similar attire. Van Dyke was arrested on Thursday night and faces multiple charges, including unlawful use of confidential government information for personal gain, theft of nonpublic government information, commodities fraud, wire fraud, and making an unlawful monetary transaction.
He made his first federal court appearance in North Carolina on Friday and was released on a $250,000 bond. The case has drawn attention to other suspicious trades, particularly in the oil futures market, which preceded key developments in the US-Iran conflict. Following Van Dyke’s arrest, President Donald Trump expressed concern about the growing trend of betting on geopolitical events, describing the world as having become a casino.
He stated that he was not happy with this trend, highlighting the potential risks and ethical concerns associated with such activities. This story has been updated with additional details as the case continues to develop
Special Forces Classified Information Prediction Markets Geopolitical Betting Military Operation
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