RALEIGH, N.C. (AP) — On Friday, a U.S. special forces soldier was released on bond following charges that he exploited classified information about a mission to capture Venezuelan President Nicolas Maduro to gain over $400,000 on the prediction market Polymarket, as stated by a federal magistrate.
The North Carolina magistrate approved Gannon Ken Van Dyke’s release, instructing him to appear at a New York federal courthouse by Tuesday for further proceedings.
During the nearly hourlong hearing, Van Dyke, sporting a beard and arm tattoos, spoke little. He was assigned a federal public defender, who declined to comment afterward. Van Dyke’s $250,000 unsecured bond required no upfront payment.
Federal prosecutors allege Van Dyke used his access to classified information about the operation to capture Maduro in January to profit on Polymarket, a major prediction market platform. These platforms allow trading on a wide range of topics, from the Super Bowl to U.S. elections and reality show outcomes.
Stationed at Fort Bragg near Fayetteville, North Carolina, Van Dyke was charged Thursday with multiple offenses, including the unlawful use of confidential government information for personal gain, theft of nonpublic information, commodities fraud, wire fraud, and making an unlawful monetary transaction.
He faces potential sentences of up to 10 years for four of the charges and up to 20 years for a fifth, according to the government. Attempts to reach Van Dyke by phone were unsuccessful as his number is not in service.
At 38, Van Dyke spent about a month involved in planning and executing capturing Maduro, as reported by the New York federal prosecutor’s office. Despite signing nondisclosure agreements to protect sensitive information, prosecutors claim he used his knowledge to place bets on Maduro’s removal by January 31.
“This case involves a U.S. soldier who allegedly exploited his position to profit from a legitimate military operation,” commented FBI Director Kash Patel on social media.
Shayne Coplan, CEO of Polymarket, stated in a post on X that the company identified the suspicious activity, reported it to authorities, and cooperated in the investigation.
“Every trade is public, permanent, and auditable,” Coplan emphasized. “Bad actors leave a trail.”
Public attention was drawn days after the Venezuelan raid due to massive profits from well-timed bets, leading to bipartisan calls for tighter regulation of the markets.
The rapid emergence of these markets has sparked growing scrutiny from Congress and state governments. Some lawmakers, concerned about highly specific, well-timed trades related to the U.S. and Israel’s conflict with Iran, as well as bets on President Donald Trump’s next moves, have advocated for measures against insider trading.
The Trump administration has shown supportive of the industry’s expansion. President Trump’s eldest son serves as an adviser for both Polymarket and its main competitor, Kalshi, and is a Polymarket investor. Trump’s social media platform, Truth Social, is launching its prediction market called Truth Predict.
Van Dyke recently moved into a Fayetteville home, according to neighbor Larry Duncan, a former Marine.
“I introduced myself and offered help,” Duncan said. “I mentioned he looked like special forces, and he just smiled. Having worked at Fort Bragg, I recognized the demeanor. He was tattooed, quiet, and somewhat secretive.”
The Commodity Futures Trading Commission, the federal agency overseeing prediction markets, revealed on Thursday that it also filed a complaint against Van Dyke.
This complaint claims Van Dyke transferred $35,000 from his personal bank account to a cryptocurrency exchange account on Dec. 26, just over a week before U.S. forces entered Caracas and captured Maduro.
Van Dyke allegedly placed bets on Maduro’s potential removal from power between Dec. 30 and Jan. 2, with most bets occurring on Jan. 2, mere hours before missiles struck Caracas.
The bets allegedly resulted in “more than $404,000 of profits,” according to the complaint.
“The defendant was entrusted with confidential information about U.S. operations and yet took action that endangered U.S. national security and put the lives of American service members in harm’s way,” said Michael Selig, the commission’s chairman.
Associated Press reporters Allen G. Breed in Raleigh, Ed White in Detroit and John Seewer in Toledo, Ohio, contributed.
