Jay Clayton, U.S. Attorney for the Southern District of New York | Department of Justice
U.S. Attorney for the Southern District of New York, Jay Clayton, announced on Apr. 23 that Gannon Ken Van Dyke, a U.S. Army soldier, has been indicted for allegedly using confidential government information to profit from bets placed on Polymarket, a prediction marketplace. The indictment charges Van Dyke with theft of nonpublic government information, commodities fraud, wire fraud, and making an unlawful monetary transaction.
The case raises concerns about the misuse of sensitive national security information by individuals entrusted with its protection and highlights potential vulnerabilities in emerging financial platforms like prediction markets.
According to the indictment unsealed in Manhattan federal court, Van Dyke was involved in planning and executing "Operation Absolute Resolve," a U.S. military operation to capture Nicolás Maduro. Authorities allege that he used his access to classified details about the operation to place bets related to Venezuela and Maduro's fate on Polymarket between December 27, 2025 and January 2, 2026—ultimately profiting approximately $409,881.
"Prediction markets are not a haven for using misappropriated confidential or classified information for personal gain," said U.S. Attorney 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 safeguarding national secrets have an obligation not to exploit them.
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." FBI Director Kash Patel stated: "Today’s announcement makes clear no one is above the law... Any clearance holders thinking of cashing in their access and knowledge for personal gain will be held accountable." FBI Assistant Director James C. Barnacle Jr., said Van Dyke "profited more than $400,000 by trading various outcomes related to Venezuela after learning of the operation because of his role as a U.S. Army soldier." He emphasized ongoing efforts by law enforcement against such threats.
Following news coverage about unusual trading activity after Operation Absolute Resolve became public knowledge on January 3, authorities say Van Dyke attempted to conceal his identity online—including requesting deletion of his Polymarket account under false pretenses.
Van Dyke faces 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 involving an unlawful monetary transaction (up to ten years). Actual sentencing will be determined by judicial discretion if convicted.
