US Army Master Sergeant Gannon Ken Van Dyke pleaded not guilty on Tuesday to federal fraud charges for allegedly using classified information to place bets on the ouster of former Venezuelan President Nicolás Maduro, netting $400,000 in winnings.
Court Appearance
Van Dyke, 38, appeared in a Manhattan federal court before US District Judge Margaret Garnett, sporting a shaved head and wearing a black blazer, jeans, and brown shoes. He was accompanied by his attorneys, Zach Intrater and Mark Geragos.
The soldier was arrested on April 23 following a federal indictment that accused him of placing $33,000 in bets on the prediction market Polymarket between December 27, 2025, and January 2, 2026. The bets predicted that Maduro would soon be removed from power and that US forces would enter Venezuela.
Insider Trading Allegations
According to prosecutors, Van Dyke exploited his role in planning and executing the January raid that captured Maduro and his wife, Cilia Flores. At the time of the bets, Polymarket assigned low probabilities to those events, resulting in a substantial payout for Van Dyke.
This case marks the first time the US Department of Justice has filed insider trading charges involving a prediction market. The Commodity Futures Trading Commission has also filed civil charges against Van Dyke.
Criminal Charges
Van Dyke faces five criminal counts: unlawful use of confidential government information for personal gain, theft of non-public government information, commodities fraud, wire fraud, and making an unlawful monetary transaction.
Polymarket stated that it flagged Van Dyke's trading activity to authorities and cooperated with the investigation. Rival prediction market Kalshi had previously blocked Van Dyke from opening an account due to identity verification requirements, as reported by Reuters.
Bail and Next Steps
US Magistrate Judge Brian Meyers in Raleigh, North Carolina, ordered Van Dyke released on a $250,000 bond during his initial court appearance on Friday. Judge Garnett is expected to oversee the case moving forward.
