A member of the U.S. special forces, Gannon Ken Van Dyke, pleaded not guilty on Tuesday to charges of utilizing classified information regarding the operation to capture former Venezuelan leader Nicolás Maduro in order to gain over $400,000 US on the prediction market Polymarket. Van Dyke, 38, entered the plea in Manhattan federal court after being accused of various offenses, including the unlawful use of confidential government information for personal profit and commodities and wire fraud.
Following the plea, he was released on a $250,000 US bail with travel restrictions limited to specific areas within New York, North Carolina, California, and essential travel points. Prosecutors disclosed that evidence in the case would involve data obtained from grand jury subpoenas, cryptocurrency exchanges, search warrants, and social media accounts.
Van Dyke’s defense attorney, Zach Intrater, expressed confidence that potential disputes would arise from motions made in favor of his client rather than the actual event. The judge scheduled a pretrial conference for June 8 for further proceedings.
The case emerges amid heightened scrutiny of prediction markets, which enable individuals to trade or bet on various events, with growing calls for stricter regulation due to concerns about insider trading. Notably, the Trump administration has shown support for the expansion of prediction markets. The president’s eldest son serves as an advisor to both Polymarket and its competitor, Kalshi, and has investments in Polymarket. Additionally, Trump’s new social media platform, Truth Social, plans to launch its prediction market named Truth Predict.
Prosecutors alleged that Van Dyke, who played a role in planning and executing Maduro’s capture, had signed nondisclosure agreements related to the operations but went on to place bets predicting Maduro’s removal from power by a specific date. These bets, totaling $33,000 US over three days, yielded profits exceeding $404,000 US, as outlined in a criminal complaint.
Polymarket, a prominent prediction market, identified the suspicious betting activity and reported it to the authorities. Van Dyke, stationed at Fort Bragg near Fayetteville, N.C., secured bond following a court appearance in North Carolina and will proceed with his case in New York.