A member of the U.S. special forces, Gannon Ken Van Dyke, pleaded not guilty on Tuesday to allegations of using classified information related to the operation to capture former Venezuelan leader Nicolás Maduro to make over $400,000 US on the prediction market Polymarket. The 38-year-old entered his plea in a federal court in Manhattan after being charged with various offenses including the unauthorized use of confidential government information, theft of nonpublic government information, commodities fraud, wire fraud, and engaging in an unlawful monetary transaction.
Van Dyke, who was released on $250,000 US bail, is permitted to travel only within specific regions of New York, North Carolina, California, and necessary travel points between them. Prosecutors indicated that evidence in the case will involve data from grand jury subpoenas, cryptocurrency exchange records, search warrants, and social media accounts.
During the court session, Van Dyke’s defense attorney, Zach Intrater, expressed confidence that the core disputes would revolve around procedural motions he intends to file for his client rather than the actual events. The judge scheduled a pretrial conference for June 8 for further proceedings.
The case emerges amidst growing scrutiny of prediction markets, platforms that enable individuals to trade or bet on a wide array of topics, with calls from policymakers for enhanced regulation due to concerns about insider trading. Notably, the Trump administration has shown support for the industry’s expansion, with the former president’s eldest son serving as an advisor for Polymarket and its competitor Kalshi, as well as being an investor in Polymarket. Trump’s new social media platform, Truth Social, is also launching its prediction market called Truth Predict.
Prosecutors alleged that Van Dyke, who played a role in planning and executing Maduro’s capture and had signed nondisclosure agreements regarding the operations, placed multiple bets on Maduro being ousted by January 31. These bets, totaling $33,000 US and made over three days, generated profits exceeding $404,000 US, as outlined in a criminal complaint.
Polymarket, a significant player in the prediction market sector, identified the suspicious betting activity and reported it to the authorities, according to CEO Shayne Coplan. Van Dyke, based at Fort Bragg near Fayetteville, N.C., secured bond following a recent court appearance in North Carolina and will continue his legal proceedings in New York.