A U.S. special forces soldier was arrested and charged with using classified information to profit over $400,000 betting on the potential ouster of Venezuelan President Nicolás Maduro.
U.S. Soldier Accused of Illegal Betting
A U.S. special forces soldier has been arrested for allegedly using confidential government information to make bets on the potential overthrow of Venezuelan President Nicolás Maduro on the Polymarket prediction platform, the U.S. Department of Justice announced Thursday.
Senior Sergeant Gannon Ken Van Dyke, who participated in preparations for the operation, is accused of exploiting classified government information for personal gain, theft of non-public information, fraud, and illegal financial transactions.
Justice Department Statement
“Our men and women in uniform are entrusted with classified information to carry out their mission as safely and effectively as possible, and they must not use this highly sensitive information for their own financial benefit,” stated Acting Attorney General Todd Blanche.
First of Its Kind Case
Reuters noted that this is likely the first case where the U.S. Department of Justice has brought charges related to the use of confidential information in bets on prediction markets.
Suspicious Activity Following Operation
Following an operation on January 3rd, where U.S. commandos apprehended Maduro in Caracas, media attention was drawn to suspicious transactions on the Polymarket platform. An anonymous investor had purchased contracts predicting a U.S. attack on Venezuela in the weeks leading up to the operation, earning $410,000.
How Prediction Markets Work
Prediction markets, such as Polymarket, allow users to buy “yes” or “no” contracts regarding future events, spanning sports, entertainment, politics, and economics, creating opportunities for substantial profits for those with inside information.