Federal prosecutors have arrested U.S. Army soldier Gannon Ken Van Dyke, accusing him of making more than $400,000 on prediction market Polymarket by betting on the capture of Venezuelan President Nicolás Maduro — a bet he allegedly knew would pay off because he was part of the operation.
According to court documents, Van Dyke used inside information from his military role to place wagers on Maduro's arrest before it was announced to the public. The profits from the bets, which were placed on the platform Polymarket, have drawn scrutiny from investigators.
The case marks a significant intersection of national security and the growing phenomenon of prediction markets, where users bet on the outcome of real-world events. Polymarket, which allows users to trade contracts on political and other events, has seen a surge in activity and controversy in recent years.
Van Dyke faces charges related to the illegal use of confidential information for personal financial gain. The arrest highlights the potential for misuse of prediction markets by individuals with access to sensitive intelligence.