U.S. Attorney for the Southern District of New York, Jay Clayton, announced on Apr. 23 the unsealing of an indictment charging Gannon Ken Van Dyke, a U.S. Army soldier, with several offenses related to the alleged use of classified government information for personal financial gain through bets placed on a prediction marketplace called Polymarket.
The case highlights concerns about the misuse of sensitive government information and its potential exploitation in new online financial platforms such as prediction markets.
According to prosecutors, Van Dyke was involved in planning and executing “Operation Absolute Resolve,” a U.S. military operation aimed at capturing Nicolás Maduro in Venezuela between December 2025 and January 2026. Authorities allege that Van Dyke used his access to nonpublic classified details about this operation to place bets on Polymarket regarding outcomes related to Venezuela and Maduro’s status, including whether U.S. forces would be present in Venezuela or if Maduro would be removed from power by certain dates.
“Prediction markets are not a haven for using misappropriated confidential or classified information for personal gain,” said Jay Clayton. “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. That is clear insider trading and is illegal under federal law.” Clayton added that those entrusted with national secrets have a duty not to exploit them for personal benefit.
Acting Attorney General Todd Blanche said: “Our men and women in uniform are trusted with classified information in order to accomplish their mission as safely and effectively as possible, and are prohibited from using this highly sensitive information for personal financial gain.” Blanche noted that while widespread access to prediction markets is relatively new, federal laws protecting national security remain fully applicable.
FBI Director Kash Patel said: “Today’s announcement makes clear no one is above the law, and this FBI will do whatever it takes to defend the homeland and safeguard our nation’s secrets.” FBI Assistant Director James C. Barnacle Jr., stated: “Gannon Ken Van Dyke allegedly betrayed his fellow soldiers by utilizing classified information for his own financial gain… The FBI will continue to investigate threats to our nation’s security especially from those entrusted to safeguard sensitive classified information and military operations.”
Prosecutors allege that after winning approximately $409,881 from these wagers following successful completion of Operation Absolute Resolve—and public confirmation—Van Dyke moved most proceeds into foreign cryptocurrency accounts before transferring funds into an online brokerage account under another identity.
Van Dyke faces multiple charges including three counts under the Commodity Exchange Act (each carrying up to ten years’ imprisonment), one count of wire fraud (up to twenty years), and one count relating to unlawful monetary transactions (up ten years). Any sentencing will ultimately be determined by a judge if he is convicted.
Clayton praised both law enforcement agencies involved—including cooperation from Polymarket—in bringing forward these allegations.
