A US soldier who participated in the January operation to capture Venezuelan President Nicolás Maduro has been arrested for allegedly making over $400,000 in bets on the politician's removal from office, federal authorities announced Thursday.
Details of the Case
Prosecutors allege that Gannon Ken Van Dyke, a US soldier, was involved in planning the military operation to capture and depose Maduro starting in early December. Between early December and early January, Van Dyke reportedly placed 13 bets on Polymarket, a prediction market, regarding a US invasion of Venezuela and the capture of its leader.
Van Dyke faces charges of commodities fraud, wire fraud, and unlawful use of confidential government information for personal gain. According to the Department of Justice, he could be sentenced to up to 60 years in prison.
Official Reactions
FBI Assistant Director James C. Barnacle Jr. condemned Van Dyke's actions, calling them a betrayal to fellow soldiers. Acting Attorney General Todd Blanche stated, "Our men and women in uniform are trusted with classified information ... and are prohibited from using this highly sensitive information for personal financial gain." FBI Director Kash Patel commented on social media, "This involved a US soldier who allegedly took advantage of his position to profit off of a righteous military operation. Investigation ongoing."
Polymarket stated that it referred a user trading on classified government information to the DoJ, adding, "Insider trading has no place on Polymarket. Today’s arrest is proof the system works."
Broader Context
The announcement came a day after three US congressional candidates were fined by another prediction market site, Kalshi, for betting on their own races. One candidate, Mark Moran, claimed he placed the wager to prove a point. Kalshi's sanctions appear aimed at appeasing lawmakers considering legislation to prevent government employees from profiting from classified information.
Speculation about political insider trading has increased recently, following well-timed bets on the Iran war that netted over $1 billion.
Trump's Comments
On Thursday evening, President Donald Trump told reporters he would look into Van Dyke's arrest, comparing it to Pete Rose betting on his own team. When asked about betting markets related to Iran, Trump said, "The whole world unfortunately has become somewhat of a casino. I was never much in favor of it. I don’t like it, conceptually, but it is what it is … it’s a crazy world, it’s a much different world than it was."
