A US Army soldier has been charged in connection with an alleged scheme to use classified information to profit from prediction market bets on Polymarket.
The Justice Department unsealed an indictment against Gannon Ken Van Dyke, 38, of Fayetteville, North Carolina, charging him with unlawful use of confidential government information for personal gain, theft of nonpublic government information, commodities fraud, wire fraud and making an unlawful monetary transaction.
The case centers on alleged trading activity tied to Operation Absolute Resolve, a US military operation to capture Nicolás Maduro in Venezuela.
According to prosecutors, Van Dyke was stationed at Fort Bragg and was involved in the planning and execution of the operation between December 2025 and January 2026. During that period, he allegedly had access to classified information about the timing and nature of the operation.
The indictment states that Polymarket, operated by Blockratize, offered binary event contracts in 2025 covering Venezuela-related outcomes, including whether US forces would enter Venezuela by certain dates, whether Maduro would be removed from power and whether President Trump would invoke War Powers against Venezuela.
Van Dyke allegedly created a Polymarket account on Dec. 26, 2025 and placed around 13 bets from Dec. 27 through Jan. 2. Prosecutors said all positions backed “YES” outcomes on Venezuela and Maduro-related contracts.
In total, the indictment alleges Van Dyke wagered approximately $33,034 while in possession of classified nonpublic information. After Maduro and his wife were apprehended in Caracas on Jan. 3, several relevant markets resolved to “YES,” generating alleged profit of approximately $409,881.
Prosecutors further allege that Van Dyke transferred most of the proceeds to a foreign cryptocurrency vault and later deposited funds into a new online brokerage account.
He is also accused of trying to conceal his identity after reports of unusual trading appeared in the press and on social media.
The charges include three counts under the Commodity Exchange Act, each carrying a maximum sentence of 10 years in prison, one count of wire fraud carrying up to 20 years and one count of unlawful monetary transaction carrying up to 10 years.
The case follows earlier scrutiny of Polymarket’s war-related markets. Earlier this month, Polymarket was criticized after taking bets on the fates of US pilots shot down in Iran.
The Justice Department said any sentence would be determined by a judge, with maximum penalties set by Congress
