Federal prosecutors have charged an active-duty U.S. Army soldier in connection with an alleged insider trading scheme involving prediction markets, claiming he used classified military intelligence to generate more than $400,000 in illicit profits tied to an operation involving Venezuelan President Nicolás Maduro.

According to the U.S. Department of Justice, 38-year-old Gannon Ken Van Dyke is accused of exploiting sensitive, nonpublic information related to a U.S. military operation—reportedly known as “Operation Absolute Resolve”—to place a series of high-stakes bets on geopolitical outcomes through the online prediction platform Polymarket.

Prosecutors allege that Van Dyke, who was stationed at Fort Bragg in North Carolina, began placing bets in late December 2025, just days before the alleged U.S. operation targeting Maduro.

Using a cryptocurrency-funded account and virtual private network (VPN) to conceal his identity and location, he reportedly placed 13 separate wagers totaling approximately $33,000.

These bets focused on outcomes such as whether U.S. forces would enter Venezuela and whether Maduro would be removed from power before the end of January 2026.

Authorities claim Van Dyke had direct knowledge of the classified operation at the time each bet was placed, giving him an unfair advantage in predicting the outcomes.

Following the launch of the military operation on January 3, 2026—an event that reportedly resulted in the capture of Maduro and significant casualties—Van Dyke allegedly cashed out winnings exceeding $400,000.

Investigators say he subsequently transferred much of the funds into a foreign cryptocurrency account and attempted to delete his Polymarket profile.

Van Dyke now faces multiple federal charges, including:

• Three counts of violating the Commodity Exchange Act
• One count of wire fraud
• One count of engaging in unlawful monetary transactions

If convicted, he could face significant prison time, with some charges carrying penalties of up to 20 years.

In a statement, FBI Assistant Director James C. Barnacle Jr. said the accused allegedly betrayed his fellow service members and the public trust by leveraging classified information for personal financial gain.”

The case highlights increasing concerns over the use of prediction market platforms—where users bet on real-world events—for potential insider trading and abuse.

These platforms have expanded rapidly in recent years, particularly amid regulatory changes that have allowed for broader participation in political and geopolitical betting.

Critics argue that such platforms may be vulnerable to exploitation by individuals with privileged access to sensitive information, including government officials or military personnel.

Authorities say the investigation remains ongoing, with coordination between the Department of Justice, the FBI, and the Commodity Futures Trading Commission (CFTC). Additional scrutiny is expected as officials examine whether similar cases of insider betting may have occurred.

The case underscores the serious legal and ethical implications of misusing classified intelligence, particularly when tied to financial markets and national security operations.