A special forces soldier involved in the capture of Venezuelan President Nicolás Maduro pleaded not guilty Tuesday to charges that he used classified information about the operation to secure over $400,000 in illegal profits. Gannon Ken Van Dyke, a 38-year-old active-duty soldier stationed at Fort Bragg, appeared in a New York federal court to face the allegations.
The case marks a landmark legal moment as the first time federal prosecutors have brought charges related to bets placed on prediction markets, platforms where users wager on the outcomes of geopolitical events, sports, and pop culture.
Prosecutors allege that Van Dyke, who was reportedly part of the team that extracted Maduro from Caracas on January 3, used his insider knowledge to place $32,000 in bets on Polymarket. His wagers correctly predicted that Maduro would be out of Venezuela by the end of January, resulting in a payout exceeding $400,000.
Defense attorney Mark Geragos defended Van Dyke as an “American hero,” arguing that his client has been charged with something that is not actually a crime.
Van Dyke was released on a $250,000 bond and ordered to surrender his passport and firearms. He is scheduled to return to court on June 8.
The indictment claims Van Dyke attempted to conceal his windfall by transferring the funds to a foreign cryptocurrency vault and later requested that Polymarket delete his account after the successful trade began to draw media scrutiny.
The filing also references a photograph of Van Dyke in military fatigues, armed with a rifle, taken shortly after the operation.
The arrest has intensified the debate over prediction markets. President Donald Trump recently expressed concern over the trend of betting on global conflicts, describing the world as having become a “casino” and stating he was “not happy” with the development. Lawmakers have also pointed to other suspicious trades in oil futures that preceded major shifts in the US-Iran conflict.