Gannon Ken Van Dyke, a U.S. military member, faces charges for insider betting on Polymarket, allegedly earning over $400,000 using classified information.
The U.S. Department of Justice has charged Gannon Ken Van Dyke, an active-duty military member, for allegedly using classified information to place bets on the prediction market platform Polymarket.
Investigations reveal that Van Dyke was involved in Operation "Absolute Resolve," which aimed to capture Nicolás Maduro, the former President of Venezuela. He reportedly utilized his insider knowledge regarding the operation's schedule and specifics to place bets, accumulating approximately $33,000 in wagers and netting over $400,000 in profits.
To conceal his financial gains, Van Dyke allegedly used an offshore cryptocurrency wallet and brokerage account.
The charges against him include:
- Misuse of confidential government information;
- Theft of non-public data;
- Commodity market fraud and misuse of electronic communications;
- Illegal financial transactions.
Acting U.S. Attorney Todd Blanche emphasized that classified information must not be exploited for personal gain. U.S. Attorney for the Southern District of New York, Jay Clayton, characterized Van Dyke's actions as "obvious insider trading," asserting that the office will pursue accountability for those who compromise national security through such abuses.
Polymarket has stated that they reported the suspicious activity to the authorities after enhancing their regulations against insider trading. They confirmed their cooperation with the DOJ's investigation regarding the matter.
Facing a potential sentence of up to 10 years for four of the charges, Van Dyke could receive a maximum of 20 years for the fraud charge involving electronic communications.
In a related incident, two accounts on Polymarket were flagged for suspected manipulation after generating $37,000 from successful bets regarding unusual temperature readings at Paris Charles de Gaulle Airport in April.
