A member of the special forces implicated in the Venezuelan president Nicolás Maduro’s apprehension has been taken into custody for allegedly profiting over US$400,000 (£296,980) by wagering on Maduro’s removal from power. The US Justice Department disclosed that Gannon Ken Van Dyke placed bets exceeding US$33,034 (£24,534) on a cryptocurrency-based gambling platform, Polymarket, securing USD$409,000 (£303,686) in winnings. These bets were made shortly before former US president Donald Trump announced the capture of Maduro in a bold early morning raid on the Venezuelan leader’s residence in Caracas.
The bets triggered suspicions of insider trading and prompted a lengthy investigation resulting in Van Dyke’s indictment. The charges against him include the unlawful use of confidential information for personal gain, theft of nonpublic government information, commodities fraud, wire fraud, and unlawful monetary transactions. Following Trump’s “Operation Absolute Resolve” declaration, unusual trading activities on Polymarket regarding Maduro’s capture were reported in the media and on social platforms. Van Dyke, in an attempt to conceal his involvement in the questionable bets, requested the deletion of his Polymarket account, falsely stating a loss of access to the associated email address. On the same day, he changed the email linked to his cryptocurrency exchange account to an unidentifiable address.
According to the indictment, Van Dyke exploited classified information for personal profit and then attempted to obscure the source of his gains and mask his connection to the accounts involved in the illicit trades. Polymarket confirmed that they reported the suspicious bets to the Department of Justice and fully cooperated with the investigation. FBI Director Kash Patel emphasized that the indictment sends a clear message to individuals with access to privileged information, asserting that no one is above the law, and the FBI is committed to defending national security.
The arrest of Van Dyke represents the first instance of US authorities taking action against insider trading on Polymarket. However, this move is not unprecedented globally, as evidenced by a similar case in Israel involving an army reservist and civilian charged with using classified information to place bets on the platform.
