US soldier arrested on charges of insider trading on Nicolás Maduro markets
Gannon Ken Van Dyke was involved in the military operation taking former Venezuelan leader Nicolás Maduro into US custody, with the DOJ accusing him of making trades with prior classified knowledge
A member of the US special forces involved in the capture of Nicolás Maduro has been arrested after allegedly betting on the former Venezuelan president’s removal in the run up to the military operation.
Gannon Ken Van Dyke is accused by the US Department of Justice (DOJ) of using what was at the time classified information to make trades on Polymarket in December before the US military seized Maduro the following month.
It has been reported that the serviceman won more than $400,000 (£303,702).
Van Dyke, stationed at Fort Bragg in North Carolina, is being held on charges of insider trading. He is said to have placed bets of more than $33,000 on the timing and outcome of “Operation Absolute Resolve.”
Charges include “unlawful use of confidential government information for personal gain, theft of nonpublic government information, commodities fraud, wire fraud, and making an unlawful monetary transaction”, according to the published indictment.
The Commodity Futures Trading Commission (CFTC) has also filed a complaint against Van Dyke for insider trading.
DOJ officials said as a soldier, Van Dyke would have signed nondisclosure agreements to “never divulge, publish, or reveal by writing, words, conduct, or otherwise […] any classified or sensitive information relating to military operations.”
Posting on social media on Thursday, April 23, Polymarket wrote: “When we identified a user trading on classified government information, we referred the matter to the DOJ and cooperated with their investigation.
“Insider trading has no place on Polymarket. Today’s arrest is proof the system works.”
Acting US Attorney General Todd Blanche said: “Our men and women in uniform are trusted with classified information in order to accomplish their missions as safely and effectively as possible, and are prohibited from using this highly sensitive information for personal financial gain.
“Widespread access to prediction markets is a relatively new phenomenon, but federal laws protecting national security information fully apply.”
President Donald Trump remarked: “The whole world, unfortunately, has become somewhat of a casino, and you look at what’s going on all over the world, in Europe and every place, they’re doing these betting things. I was never much in favor of it.”
Insider trading fears have also been voiced following the US attacks on Iran, with six Polymarket users winning a total of $1.2m on bets related to the war.
The issue was raised during a congressional hearing last week,in which CFTC chair Michael Selig was questioned about the presence of the president’s son, Donald Trump Jr, being on the executive boards of both Kalshi and Polymarket.
Polymarket is not yet officially live in the US. It is due to return after a four-year hiatus following its acquistion of QCEX, a CFTC-registered firm.