US Army Sergeant Charged with Insider Trading After $404K Bet on Maduro Capture Using Classified Intel

The US Department of Justice has charged 38-year-old Gannon Ken Van Dyke, a master sergeant in the US Army Special Forces, with using classified information to profit from bets on Nicolás Maduro’s ouster in January.

Federal authorities allege Van Dyke was involved in Operation Absolute Resolve, the military operation to capture Venezuela’s president. According to a civil complaint from the Commodity Futures Trading Commission (CFTC), he used insider knowledge of the operation to place trades on Polymarket, earning $404,000 in illicit profits.

The CFTC has filed a complaint seeking penalties, disgorgement of profits, and a permanent ban on Van Dyke from trading on regulated markets. The DOJ has charged him with three counts of violating the Commodity Exchange Act, one count of wire fraud, and one count of an unlawful monetary transaction.

"The defendant allegedly violated the trust placed in him by the United States government by using classified information about a sensitive military operation to place bets on the timing and outcome of that very operation, all to turn a profit. That is clear insider trading and is illegal under federal law."

US Attorney Jay Clayton, Southern District of New York

Polymarket, a popular prediction market platform, welcomed the charges, emphasizing its stance against insider trading.

"Insider trading has no place on Polymarket. Today's arrest is proof the system works."

Polymarket statement

Polymarket allows users to bet on outcomes of events, including political developments such as the removal of foreign leaders. From December 2023 to January 2024, the platform hosted four event contracts related to Venezuela and Maduro’s potential ouster.

Under the username "Burdensome-Mix", Van Dyke allegedly placed approximately $33,000 in bets across these four contracts in December and January, just before Maduro’s removal on January 3.

CFTC Commissioner Michael Selig, whose agency oversees prediction markets, also praised the action, reaffirming his stance against insider trading.

"I’ve been crystal clear: anyone who engages in insider trading in any of our markets will face the full force of the law."

CFTC Commissioner Michael Selig

Liam Kelly is DL News’ Berlin correspondent. Contact him at [email protected].