ISLAMABAD: A US Army soldier has been charged with "unlawful use of confidential government information" about a military operation that captured Venezuelan leader Nicolas Maduro to make more than $400,000 in profits on a prediction market, the US Justice Department said on Thursday.
According to the press release, Gannon Ken Van Dyke, 38, was indicted in the Southern District of New York on charges of using classified information for "personal gain, commodities fraud, wire fraud, and engaging in an unlawful monetary transaction."
The Department of Justice said the information was tied to a mission known as "Operation Absolute Resolve" to place bets on the outcome and timing of Maduro's apprehension in Venezuela through Polymarket, a prediction platform.
"Our men and women in uniform are trusted with classified information… and are prohibited from using this highly sensitive information for personal financial gain," said Acting Attorney General Todd Blanche.
"Widespread access to prediction markets is a relatively new phenomenon, but federal laws protecting national security information fully apply," he said.
According to authorities, Van Dyke placed 13 bets totaling about $33,000 between late December 2025 and January 2026, predicting that US forces would be deployed in Venezuela and that Maduro would be removed from power by the end of January.
In early January, the US apprehended Maduro and his wife at a residence in Caracas, Venezuela, with the President of the United States announcing the successful operation hours later.
"Prediction markets are not a haven for using misappropriated confidential or classified information for personal gain," said US Attorney in the Southern District of New York Jay Clayton. "That is clear insider trading and is illegal under federal law," CBS News reported.
While this is a first arrest for US authorities, two Israeli soldiers were charged with the suspected use of classified information to place bets on Polymarket in February, according to CBS News.
FBI Director Kash Patel warned that no one is above the law, and the FBI will do whatever it takes to defend the homeland.
“Any clearance holders thinking of cashing in their access… will be held accountable,” he said.
Prosecutors said Van Dyke attempted to conceal his activity after the operation, including transferring funds through cryptocurrency accounts and requesting the deletion of his trading account.
The Department of Justice says Van Dyke faces up to 20 years in prison on the most serious count.
