U.S. Army Sergeant Accused of Insider Trading on Venezuela Raid via Polymarket Bets

A U.S. Army Special Forces master sergeant has been arrested and charged in a high-profile insider trading case involving classified military information and cryptocurrency-based prediction markets. The U.S. Department of Justice (DOJ) unsealed an indictment against Gannon Ken Van Dyke, alleging he used confidential knowledge of a planned military raid targeting Venezuelan leader Nicolas Maduro to place lucrative bets on Polymarket.

According to federal prosecutors, Van Dyke exploited nonpublic government intelligence about the timing and outcome of the operation. Between late December 2025 and early January 2026, he allegedly placed 13 prediction market wagers totaling approximately $33,000. These bets reportedly focused on whether U.S. forces would enter Venezuela, remove Maduro, or carry out a broader invasion. After the operation unfolded, Van Dyke is accused of earning nearly $400,000 in profits.

Authorities claim the soldier attempted to conceal his activities by withdrawing funds, converting them into a bridged version of USDC, and transferring the assets to a foreign cryptocurrency wallet. He later moved portions of the funds into a brokerage account. The indictment also alleges he tried to erase his digital footprint by requesting Polymarket delete his account and by altering associated account details.

The DOJ has charged Van Dyke with unlawful use of confidential government information, theft of nonpublic data, and fraud. U.S. Attorney Jay Clayton described the case as a clear example of insider trading, emphasizing the breach of national security and public trust.

In parallel, the U.S. Commodity Futures Trading Commission (CFTC) has filed a civil complaint, highlighting concerns about the misuse of sensitive information in emerging prediction markets. CFTC Chairman Mike Selig stated that such actions not only violate financial laws but also jeopardize military operations and personnel safety.

Polymarket confirmed it identified suspicious trading activity and cooperated with federal investigators. The case has also sparked broader debate about regulation in crypto-based betting platforms, with former President Donald Trump criticizing the growing normalization of global prediction markets.