Why Is US Soldier Gannon Ken Van Dyke Arrested? Inside the $400,000 Case

A U.S. Special Forces officer who was involved in a military operation that captured Venezuela's former president has been arrested for allegedly placing bets on the removal of President Nicolas Maduro.

The officer allegedly won about $400,000 from the bets. He was arrested after authorities said he placed the bet before the information was publicly available.

The U.S. Department of Justice charged the Special Forces officer, identified as Gannon Ken Van Dyke, after authorities alleged he made trades on Polymarket, a crypto-powered platform, using classified information.

“That is clear insider trading and is illegal under federal law,” a Justice Department official said.

Van Dyke, an active-duty soldier in the U.S. Army stationed at Fort Bragg, North Carolina, won more than $409,000 as a result of his bets.

U.S. forces seized Maduro and his wife, Cilia Flores, from their compound in Caracas, Venezuela. The incident unfolded during a nighttime raid Jan. 3. U.S. forces brought them to New York to face allegations of weapons and drug offenses, which they denied.

Van Dyke allegedly placed bets on the timing and outcome of the operation known as "Operation Absolute Resolve," to turn a profit, according to a statement released by the Justice Department April 23.

The Department of Justice alleges that on Dec. 26, Van Dyke created a Polymarket account and began trading on Maduro- and Venezuela-related markets. Van Dyke is accused of placing bets totaling more than $33,000 while in possession of classified, nonpublic information, including details about "Operation Absolute Resolve."

In a statement posted on social media on April 23rd, Polymarket said that, “when we identified a U.S. trader trading on classified government information, we referred the matter to the Department of Justice and cooperated in their investigation,” the statement read.

The company also added that, “insider trading has no place on Polymarket. Today’s arrest is proof of that system works.”

Van Dyke, has been charged with unlawful use of confidential government information, commodities fraud, wire fraud and making an unlawful monetary transaction, according to an indictment which was unsealed on April 23rd.

“Our men and women in uniform are trusted with classified information to accomplish their mission as safely and efficiently as possible, and are prohibited from using this highly sensitive information for personal financial gain,” said US Attorney General Todd Blanche.

“Widespread access to prediction markets is a relatively new phenomenon, but federal laws protecting national security information fully apply.”

U.S. Attorney Jay Clayton for the Southern District of New York, where the case will proceed, added that prediction markets "are not a haven for using misappropriated confidential or classified information for personal gain."