A US Army Special Forces soldier was arrested Thursday for using classified information about the military operation to capture Venezuelan dictator Nicolas Maduro to place winning bets on Polymarket and pocket more than $400,000.
Master Sgt. Gannon Ken Van Dyke was directly involved in the “planning and execution” of Operation Absolute Resolve — the dangerous Jan. 3 special forces raid on Maduro’s compound in Caracas — and had access to “sensitive, nonpublic, classified information” about the operation, according to the Justice Department.
A week before the raid, Van Dyk, 38, allegedly placed more than $33,000 in wagers on Polymarket, a predictions market platform that allows users to bet on the outcome of future events, related to Maduro and US military action in Venezuela.
The soldier allegedly profited some $409,000 from the bets and took steps to conceal his identity and winnings, placing his ill-gotten proceeds into foreign cryptocurrency accounts.
Van Dyk was charged with three counts of violating the Commodity Exchange Act; one count of wire fraud; and one count of an unlawful monetary transaction.
He faces a maximum of 60 years in prison if convicted.
The charges were brought by the United States Attorney’s Office in the Southern District of New York.
“Prediction markets are not a haven for using misappropriated confidential or classified information for personal gain,” said US Attorney Jay Clayton said in a statement. “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.
“That is clear insider trading and is illegal under federal law.”
This is a developing story. Please check back for updates.
