A soldier from special forces, who participated in the capture of Venezuelan president Nicolás Maduro, has been apprehended for allegedly keeping over US$400,000 (£296,980) in winnings after betting on Maduro’s ousting. The US Justice Department disclosed that Gannon Ken Van Dyke placed bets exceeding US$33,034 (£24,534) on the cryptocurrency gambling platform Polymarket, securing USD$409,000 (£303,686) in profits. The wagers were made shortly before former US president Donald Trump announced Maduro’s seizure in a dramatic raid on Maduro’s residence in Caracas.
The bets triggered suspicions of insider trading, leading to a lengthy investigation culminating in Van Dyke’s indictment on various charges, including exploiting confidential information for personal gain, theft of government data, commodities fraud, wire fraud, and illicit financial transactions. Following Trump’s “Operation Absolute Resolve” declaration, unusual trading activities related to Maduro’s capture on Polymarket surfaced in the media and social networks. Van Dyke attempted to conceal his involvement by requesting Polymarket to erase his account, falsely claiming email access loss. On the same day, he changed the email linked to his cryptocurrency exchange account to an unassociated address.
The indictment states that Van Dyke misused classified data for personal trades on a prediction market, further trying to obscure the origin of his profits and hide his connection to the illicit transactions. A Polymarket representative noted that the company reported the suspicious bets to the Justice Department, collaborating fully with the investigation. The FBI Director emphasized that the arrest sends a clear message to those exploiting privileged information, affirming that offenders will be held accountable for their actions.
The arrest underscores Polymarket’s commitment against insider trading, ensuring that the system operates effectively. While Van Dyke’s arrest is a first for US authorities, similar cases have been reported globally, as seen in Israel where individuals faced charges for leveraging classified information to place bets on Polymarket.