A US special forces soldier has pleaded not guilty to charges of using classified intelligence to profit from bets on Polymarket, in a case marking the first federal prosecution tied to prediction markets.
Master Sergeant Gannon Ken Van Dyke allegedly used advance knowledge of a US military operation targeting Nicolás Maduro to place wagers that generated more than $400,000 in profit. ([Reuters][1])
The 38-year-old entered his plea in New York federal court on Tuesday and was released on a $250,000 bond with travel restrictions and passport surrender conditions.
Van Dyke is accused of placing at least 13 bets worth roughly $33,000 between late December 2025 and early January 2026, predicting US military action in Venezuela and Maduro’s removal from power.
“Prediction markets are not a haven for using misappropriated confidential or classified information for personal gain,”
Said US Attorney Jay Clayton.
Prosecutors allege the soldier transferred his winnings into foreign cryptocurrency accounts and attempted to delete his trading history after the operation, underscoring concerns about enforcement gaps in decentralised betting platforms.
The case has intensified scrutiny on prediction markets, with regulators and policymakers warning that insider trading risks could undermine the rapidly growing sector’s credibility and trigger stricter oversight.