April 24, 2026 — The U.S. Justice Department has indicted a special forces soldier for allegedly using classified information to make over $400,000 on the prediction market Polymarket. The soldier was part of Operation Absolute Resolve, the mission that captured Venezuelan President Nicolas Maduro.
Gannon Ken Van Dyke, a member of the U.S. special forces involved in planning and executing the operation, faces charges including violating the Commodity Exchange Act, wire fraud, and making an unlawful monetary transaction. CBS reported the arrest, citing a law enforcement source.
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Federal officials say Van Dyke’s bets on Polymarket were informed by classified information he accessed as a government insider. He had signed nondisclosure agreements barring him from revealing any classified or sensitive information related to his military operations.
The Bets and the Timeline
Van Dyke created a Polymarket account in December 2025. Between Dec. 27, 2025 and Jan. 26, 2026, he made 13 bets totaling $33,034. The wagers included markets like “U.S. Forces in Venezuela . . . by January 31, 2026” and “Maduro out by . . . January 31, 2026.”
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After collecting his winnings, authorities say Van Dyke took steps to hide his connection to the account. The government alleges he made over $400,000 from these bets.
Industry watchers note that this case highlights a growing issue: the use of prediction markets by public officials with access to nonpublic information.
Legal and Regulatory Implications
“Our men and women in uniform are trusted with classified information in order to accomplish their mission as safely and effectively as possible, 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.”
This case could signal a shift in how regulators view prediction markets. Legislation is currently being considered that would ban public officials from using nonpublic information to bet on prediction sites.
Polymarket has grown rapidly, striking deals with media outlets and sports organizations. But it has also faced scrutiny over insider trading and market manipulation.
What This Means for Investors
For investors in prediction markets, this case raises questions about market integrity. If insiders can profit from classified information, it undermines trust in these platforms.
The implication is clear: regulators are watching. The Justice Department’s move suggests they will aggressively prosecute any misuse of classified information for personal gain, even on new platforms like Polymarket.
Van Dyke’s case is set to proceed through the federal court system. His arrest marks one of the first major insider trading cases involving a prediction market.
This article was produced with AI assistance and reviewed by our editorial team for accuracy and quality.
