A U.S. Army master sergeant pleaded not guilty in New York federal court to charges of using classified information from the operation that captured former Venezuelan leader Nicolás Maduro to win over $400,000 in bets. Gannon Ken Van Dyke, 38, faces accusations of insider trading on the prediction market Polymarket. Prosecutors described his alleged actions as a betrayal of trust.
Gannon Ken Van Dyke entered his not guilty plea on Tuesday in federal court in the Southern District of New York. The 38-year-old master sergeant, stationed at Fort Bragg near Fayetteville, North Carolina, was granted bond following a hearing in North Carolina last week. He is represented by attorney Zach Intrater, and his case will proceed in New York. Van Dyke had been taken into custody earlier this month after federal investigators linked him to suspicious bets placed shortly after President Trump's January announcement of Maduro's capture by U.S. special forces, in which Van Dyke participated, signing nondisclosure agreements beforehand. Federal prosecutors charged Van Dyke with unlawful use of confidential government information for personal gain, theft of nonpublic government information, commodities fraud, wire fraud, and making an unlawful monetary transaction. They allege he bet more than $33,000 on Polymarket, wagering that Maduro would be removed from office by January 31, before the raid's details became public. The platform flagged the activity and reported it to authorities, according to Polymarket CEO Shayne Coplan. U.S. Attorney Jay Clayton called the alleged conduct 'clear insider trading.' 'Prediction markets are not a haven for using misappropriated confidential or classified information for personal gain,' Clayton said in a statement. 'The defendant allegedly violated the trust placed in him by the United States Government by using classified information about a sensitive military operation to place bets on the timing and outcome of that very operation, all to turn a profit.' The case highlights growing scrutiny of prediction markets amid calls for tighter regulation over insider trading concerns. The Trump administration has supported the industry's growth, with the president's eldest son advising Polymarket and its rival Kalshi, and investing in Polymarket.
