US Soldier Denies Fraud Charges Over Betting on Maduro's Removal
Prosecutors allege that Gannon Ken Van Dyke, a US Army soldier, won $400,000 by using insider information to place bets on the ousting of Venezuelan President Nicolás Maduro. Van Dyke pleaded not guilty to fraud charges on Tuesday.
Van Dyke, 38, entered his plea in the courtroom of US District Judge Margaret Garnett in Manhattan. He appeared with a shaved head, dressed in a black blazer, jeans, and brown shoes, accompanied by his attorneys Zach Intrater and Mark Geragos.
Details of the Charges and Allegations
Van Dyke was arrested on April 23 following a federal indictment accusing him of placing $33,000 in bets on the prediction market Polymarket between December 27, 2025, and January 2, 2026. The bets predicted that Maduro would soon be out of office and that US forces would enter Venezuela.
At the time, markets assigned low probabilities to these events, resulting in a substantial payout for Van Dyke, according to prosecutors.
This case represents the first instance in which the US Department of Justice has filed insider trading charges related to a prediction market. Additionally, the Commodity Futures Trading Commission has filed civil charges against Van Dyke.
Van Dyke's Military Role and Legal Charges
Van Dyke is a master sergeant with the US Army Special Forces stationed at Fort Bragg, North Carolina. Prosecutors state he was involved in the "planning and execution" of the January raid that captured Nicolás Maduro and his wife, Cilia Flores.
He faces five criminal counts:
- Unlawful use of confidential government information for personal gain
- Theft of non-public government information
- Commodities fraud
- Wire fraud
- Making an unlawful monetary transaction
Investigation and Court Proceedings
Polymarket reported Van Dyke's trading activity to authorities and cooperated with the investigation.
According to a report citing a source familiar with the matter, rival prediction market Kalshi had previously blocked Van Dyke from opening an account due to the platform's identification requirements.
At his initial court appearance on Friday in Raleigh, North Carolina, US Magistrate Judge Brian Meyers ordered Van Dyke's release on a $250,000 bond. Judge Garnett is expected to oversee the case moving forward.
