The Department of Justice (DOJ) has charged a U.S. Army soldier who allegedly used confidential information to win big on bets around the arrest of Venezuela’s Nicolas Maduro earlier this year.
The soldier, Gannon Ken Van Dyke, is charged with unlawful use of confidential government information for personal gain, theft of nonpublic government information, commodities fraud, wire fraud, and making an unlawful monetary transaction, according to an indictment unsealed by DOJ officials on Thursday.
Polymarket has seen a number of well-timed bets on major international and national security events, including the Iran war and Maduro’s capture. Lawmakers have raised concerns about these wagers, with many alleging that insider information played a role.
Researchers at Harvard have estimated that more than $143 million in profits on Polymarket may be linked to individuals with access to nonpublic information across a range of events.
“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,” Acting Attorney General Todd Blanche said in a statement. “Widespread access to prediction markets is a relatively new phenomenon, but federal laws protecting national security information fully apply.”
FBI Assistant Director in Charge James C. Barnacle Jr. took a harder line, saying that Van Dyke “allegedly betrayed his fellow soldiers by utilizing classified information for his own financial gain.”
“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,” Barnacle said. “The FBI will continue to investigate threats to our nation’s security especially from those entrusted to safeguard sensitive classified information and military operations.”
This is a breaking news story. Updates will follow.
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