A member of the U.S. special forces will face a federal judge in New York Tuesday following accusations that he exploited classified military intelligence to earn more than $400,000 through betting on a prediction platform.
Gannon Ken Van Dyke, age 38, faces multiple federal charges including unlawful exploitation of confidential government data for personal profit, theft of classified information, commodities fraud, wire fraud, and conducting illegal financial transactions.
The charges emerge as prediction markets face increased examination from regulators, with lawmakers demanding tighter oversight of these platforms due to growing concerns about insider trading violations.
According to federal prosecutors, Van Dyke participated in both the planning and implementation of an operation targeting the capture of Venezuela’s former leader Nicolás Maduro. Despite having signed confidentiality agreements regarding these military operations, he allegedly made multiple wagers betting that Maduro would lose power before January 31st.
The suspicious betting patterns were detected by Polymarket, a major prediction trading platform, which reported the activity to federal authorities, according to company CEO Shayne Coplan.
Van Dyke, who serves at Fort Bragg located near Fayetteville, North Carolina, received bond following a court appearance in North Carolina last week and will now proceed with his case in New York. Court documents do not indicate he has secured legal representation in New York.
The current Trump administration has shown favor toward expanding the prediction market sector. The president’s oldest son serves as an advisor for both Polymarket and its primary rival Kalshi, while also holding investment stakes in Polymarket. Additionally, Trump’s Truth Social platform is developing its own prediction market service called Truth Predict.
