U.S. special forces arrested Gannon Ken Van Dyke, who allegedly placed a bet on the removal of the Venezuelan President Nicholas Maduro from his office. According to reports, he was also involved in the capture of the President.
Wager on a classified mission
Federal authorities accused the soldier for using classified military intelligence to place lucrative bets on the removal of President Nicolás Maduro. The case is raising fresh questions about the risks of insider trading in prediction markets.
Master Sgt. had access to classified information on the case called ‘Operation Absolute Resolve’ that led to the arrest of the president and his wife Cilia Flores. He had opened an account on Polymarket in late December, according to an indictment unsealed Thursday. Later, the activities showed over $32,000 placed as a bet on Maduro leaving the office by January, even before U.S. President Trump announced it.
Prosecutors alleged that his access to sensitive information during his role in the planning and execution of Operation Absolute Resolve is what influenced the predictions. His winnings caught the attention of law enforcement almost immediately despite being anonymous.
According to reports, he made 13 bets in a week, including one made a few hours before the capture. He purchased about 634 “yes” shares of the market “U.S. Forces in Venezuela for approximately 96 USDC.
Polymarket posted on X stating that the company referred the suspicious bets to the Department of Justice and cooperated with the investigation.
Prosecutors also reported that he had profited approximately $409,881. He was seen withdrawing funds and transferring them to a foreign cryptocurrency vault, known to be providing interest over deposits by lending crypto and assets to other users.
“He subsequently tried to conceal his unlawful proceeds and to disguise his connection to the accounts linked to the illicit trades,” the official report said.
An attempted cover-up?
After unusual trading activity drew attention, Van Dyke allegedly tried to cover his tracks. Authorities stated that he attempted to delete his Polymarket account and changed information that would identify details tied to his cryptocurrency accounts in an effort to cover up his connection to the trades.
However, the effort failed, triggering a months-long investigation that ultimately led to his arrest. The indictment also showed his presence during the operation despite no details of his engagement, including being photographed on the USS Iwo Jima, where Maduro was reportedly taken following his capture.
