A U.S. Army soldier has been charged with federal crimes for allegedly using classified intelligence to profit from crypto prediction markets. According to court documents, Gannon Ken Van Dyke placed 13 bets on Polymarket regarding the outcome of Operation Absolute Resolve, a military mission targeting former Venezuelan President Nicolás Maduro. His initial $33,034 in wagers generated over $409,880 in profits. Federal prosecutors and the CFTC have filed charges, marking a first-of-its-kind insider trading case involving a decentralized prediction market.
A U.S. Army soldier stationed at Fort Bragg, North Carolina, was charged with using classified military intelligence to trade on Polymarket. Gannon Ken Van Dyke, 38, allegedly accessed secrets about Operation Absolute Resolve to place bets on Venezuela-related outcomes between late December 2025 and early January 2026.
Van Dyke’s 13 bets, totaling $33,034, generated profits of $409,881. The gains were linked to the January 3, 2026, apprehension of Maduro by U.S. special forces, which was the subject of his wagers.
Three days after the operation, Van Dyke contacted Polymarket requesting deletion of his account. Federal prosecutors emphasized that traditional insider trading laws apply to such decentralized platforms.
U.S. Attorney Jay Clayton stated, “Prediction markets are not a haven for using misappropriated confidential or classified information for personal gain.” He added that the defendant allegedly violated trust by using classified information to bet on the operation’s timing and outcome.
Acting Attorney General Todd Blanche noted enforcement will adapt to emerging crypto platforms. “Widespread access to prediction markets is a relatively new phenomenon, but federal laws protecting national security information fully apply,” Blanche said.
Van Dyke faces five federal charges, including commodities fraud, wire fraud, and theft of nonpublic government information. The commodities violations each carry a maximum sentence of 10 years, while the wire fraud charge carries up to 20 years.
The CFTC filed its own complaint alongside the Department of Justice. Chairman Michael S. Selig stated, “I have been crystal clear that anyone who engages in fraud, manipulation, or insider trading in any of our markets will face the full force of the law.”
