The U.S. Department of Justice has arrested an active-duty Army soldier accused of using confidential intelligence to place winning bets on the prediction market Polymarket, according to a report by The Block.
Gannon Ken Van Dyke, 38, allegedly used his access to classified information regarding military operations to trade on markets related to the capture of former Venezuelan President Nicolás Maduro. Prosecutors claim Van Dyke participated in the planning and execution of the January military operation that led to Maduro's arrest.
On January 3, 2026, President Donald Trump announced that U.S. forces had taken Maduro and his wife, Cilia Flores, into custody. Reports surfaced the same day that a Polymarket account had wagered that Maduro would be "out" by the end of the month, a bet that resulted in $400,000 in profits.
Federal authorities allege Van Dyke created his Polymarket account in December and began trading on markets involving Venezuela and Maduro. Prosecutors stated he placed 13 bets totaling more than $33,000, including wagers on the timing of a potential U.S. invasion of Venezuela.
From these trades, Van Dyke reportedly earned approximately $409,881. The DOJ alleges he later attempted to conceal his identity by requesting that Polymarket delete his account.
"Today’s announcement makes clear no one is above the law, and this FBI will do whatever it takes to defend the homeland and safeguard our nation's secrets," FBI Director Kash Patel said in a statement, according to The Block.
Regulatory and legislative fallout
In addition to the criminal charges, the Commodity Futures Trading Commission has filed a parallel complaint seeking restitution, disgorgement, and civil penalties.
Van Dyke faces five charges, including three counts of violating the Commodity Exchange Act, one count of wire fraud, and one count of unlawful monetary transaction. If convicted, he faces a maximum of 60 years in prison.
The incident has triggered legislative action in Washington. According to the report, lawmakers have introduced bills to prevent elected officials and others from betting on prediction markets regarding government policy or actions.
House Financial Services Committee Chair French Hill told Punchbowl News that key committees are currently investigating whether federal laws overseeing prediction markets require amendments.
