WASHINGTON: A US soldier is facing criminal charges for allegedly using classified information to place bets on an online prediction market tied to a US military operation targeting Nicolas Maduro, the Department of Justice said on Thursday.
US Army soldier Gannon Ken Van Dyke, 38, of Fayetteville, North Carolina, is accused of making more than $400,000 by using insider knowledge to wager on outcomes related to the operation in Caracas.
According to officials, Van Dyke was directly involved in planning and executing the January 3 operation in Venezuela’s capital, during which US forces arrested Maduro and his wife, Cilia Flores, and transported them to New York to face drug trafficking charges.
Prosecutors allege that he used the online platform Polymarket to place a series of bets predicting that US forces would enter Venezuela and that Maduro would be removed from power.
Van Dyke reportedly wagered over $30,000 across multiple bets in late December and early January, just days before the operation took place, ultimately earning profits exceeding $400,000.
Officials stressed that he had access to highly sensitive, nonpublic military intelligence and was strictly prohibited from using such information for personal financial gain.
Acting US Attorney General Todd Blanche said that members of the armed forces are entrusted with classified information to carry out their missions and must not exploit it for profit.
The betting platform Polymarket said it had identified suspicious activity linked to the account and reported it to authorities, cooperating fully with the investigation.
“Insider trading has no place on the platform,” the company said, adding that the arrest demonstrates that its monitoring systems are effective.
Van Dyke has been charged with one count of wire fraud, one count of engaging in an unlawful monetary transaction, and three counts of violating the Commodity Exchange Act.
If convicted on all charges, he could face a maximum sentence of up to 50 years in prison.
The indictment is the latest example of insider information allegedly being used to profit from prediction markets tied to geopolitical events.
Earlier this year, several accounts reportedly earned around $1.2 million by betting that the United States would attack Iran on February 28, the day the Middle East conflict escalated.
No arrests have been made in that case, and there is currently no evidence linking those transactions to US President Donald Trump or White House officials.
Speaking to reporters on Thursday, Trump criticized the growing popularity of such betting platforms, saying:
“The whole world, unfortunately, has become somewhat of a casino… in Europe and every place, they’re doing these betting things. I was never much in favour of it.”
The case has also renewed scrutiny over potential conflicts of interest within the administration.
Democratic lawmakers and critics have accused Trump and his family of profiting from their positions since the start of his second term.
Senator Bernie Sanders claimed that the Trump family has made billions from the presidency, calling it “unprecedented kleptocracy.”
In March, Trump’s comments on “very productive” talks with Iran reportedly triggered market movements, allowing traders who acted in advance to earn significant profits.
Members of the Trump family have also reportedly generated substantial earnings from cryptocurrency ventures, a sector the administration has sought to deregulate.