Key Points
- U.S. Special Forces soldier arrested for alleged insider trading on Polymarket using classified military intelligence.
- DOJ and CFTC file criminal and civil charges under Commodity Exchange Act provisions.
Gannon Ken Van Dyke, a 38-year-old U.S. Army Special Forces Master Sergeant stationed at Fort Liberty, was arrested by the Department of Justice on charges related to alleged insider trading on the prediction platform Polymarket.
Federal prosecutors claim he used classified intelligence concerning a military operation targeting Venezuelan President Nicolás Maduro to place 13 event-based wagers, earning about $404,222 from an initial $33,933 stake.
The indictment, unsealed in the Southern District of New York, accuses Van Dyke of unlawfully using confidential government information for personal gain, theft of nonpublic information, commodities fraud, wire fraud, and unlawful monetary transactions.
Three of the counts arise under the Commodity Exchange Act (CEA), each carrying a maximum penalty of 10 years in prison.
In a parallel action, the Commodity Futures Trading Commission filed civil charges, marking its first case of this type involving event contracts under its jurisdiction.
According to the CFTC, Van Dyke generated more than $400,000 by trading on various outcomes tied to developments in Venezuela.
Allegations Involving Classified Briefings and Event Contracts
Prosecutors allege that Van Dyke attended classified briefings connected to “Operation Absolute Resolve,” a military mission reportedly culminating in Maduro’s capture.
Authorities contend that these briefings provided material nonpublic information regarding the timing and expected outcome of the operation.
On December 26, 2025, he allegedly opened a Polymarket account and began placing bets on contracts related to U.S. troop movements, Maduro’s removal by January 31, 2026, and the possibility of broader military involvement.
One position of $32,537 on Maduro’s removal by the specified date reportedly produced a 1,242% return.
Investigators state that overall profits ranging between $400,000 and $410,000 were converted into USD Coin and transferred to offshore accounts.
The government’s legal theory relies on the CEA’s prohibition against trading commodity-based event contracts while in possession of material nonpublic information obtained through government employment.
Prosecutors also point to alleged post-trade actions, including deletion of the Polymarket account and modification of an associated crypto exchange email address, as evidence supporting wire fraud-related allegations.
Following the operation, President Donald Trump publicly referenced the arrest of a Special Forces soldier suspected of insider trading on Polymarket in connection with the mission.
