A U.S. Army Special Forces master sergeant appeared in Manhattan federal court Tuesday to face charges he used classified knowledge of a covert military operation to win more than $400,000 on a prediction market app.
Gannon Ken Van Dyke, 38, pleaded not guilty to counts including unlawful use of confidential government information, wire fraud, and money laundering. He was released on $250,000 bail, with travel restricted to North Carolina, New York, and California.
Van Dyke is accused of cashing in on his direct involvement in Operation Absolute Resolve, the January 3 Special Forces raid that captured Venezuelan dictator Nicolas Maduro at his Caracas compound. According to court documents, Van Dyke began placing bets roughly a week before the raid, wagering around $33,000 on Polymarket that U.S. forces would enter Venezuela and that Maduro would be out of power by month’s end.
He walked away with $409,000.
Prosecutors say Van Dyke was stationed at Fort Bragg in Fayetteville, North Carolina, when he placed the wagers and watched the operation unfold. After collecting his winnings, he allegedly moved the money into foreign cryptocurrency accounts to conceal the source of the funds.
Van Dyke appeared in court wearing dark shades, a black open-necked shirt, and a navy blazer. His attorney, Zach Intrater, told Judge Margaret Garnett that Van Dyke is currently on leave but remains “associated with the military.”
Judge Garnett ordered Van Dyke to surrender his passport and firearms pending trial. He is due back in court June 8.
“Not guilty, your honor,” Van Dyke told the judge.
The case has drawn attention to prediction market platforms like Polymarket and Kalshi, which allow users to bet on real-world outcomes ranging from election results to military actions. The apps have surged in popularity in recent years, and Van Dyke’s arrest is now part of a broader scrutiny into how those markets can be exploited by people with advance knowledge of events.
President Trump addressed the case Friday. “The whole world, unfortunately, has become something of a casino. I’m not happy with any of this,” he said. Trump’s media company, Truth Social, is separately developing its own prediction market called “Truth Predict.”
Operation Absolute Resolve was the Special Forces mission that removed Maduro from power in early January. The raid on his Caracas compound was one of the most significant covert operations in recent U.S. military history. Van Dyke, as a master sergeant in the Special Forces, had direct access to the planning and execution of that mission.
