It was too big and it didn’t pass. A soldier from the American special forces, involved in the operation that led to the arrest of Venezuelan President Nicolas Maduro, is now himself in the crosshairs of justice. He is accused of using confidential information to bet on this military intervention and make a considerable profit.
According to a publicly released indictment on Thursday, Master Sergeant Gannon Ken Van Dyke allegedly opened an account on the predictive betting platform Polymarket at the end of December. He reportedly wagered over $30,000 on an unlikely scenario at the time: the removal or capture of Nicolas Maduro before the end of January.
A few days later, on the night of January 2-3, a secret military operation led by the United States resulted in the arrest of the Venezuelan leader in Caracas, under fire, before his transfer to New York.
The soldier is said to have won over $400,000
Investigators believe that the soldier placed multiple bets between December 27 and January 2, just before the operation. In total, his bets reportedly earned him over $400,000. He allegedly first transferred this sum to a foreign cryptocurrency wallet before depositing it into an online brokerage account.
The Justice Department accuses this soldier, stationed at Fort Bragg (North Carolina), of exploiting classified information he had access to while participating in the preparation of the operation dubbed “Absolute Resolve.” Five charges have been brought against him, including electronic fraud, fraud in commodities, and unlawful use of non-public government information for personal gain.
“Those tasked with safeguarding our nation’s secrets have a duty to protect them, not to use them for personal financial gain,” reminded Manhattan federal prosecutor Jay Clayton.
Trump claims to be unaware
The case, initially revealed by American media, had already caught the attention of authorities after suspicious financial movements on Polymarket. Officials specialized in fighting financial fraud had reportedly discussed with platform representatives.
When questioned on Thursday at the White House, Donald Trump claimed he was not informed of these accusations, while comparing the situation to that of Pete Rose, a baseball legend banned for betting on his own sport. “The whole world has become somewhat of a casino,” he added, as he and his circle are regularly accused of insider trading for suspicious bets leading up to his announcements.
This case could be groundbreaking: it would be the first prosecution of its kind in the United States involving the use of sensitive military information on prediction markets. A few weeks earlier, two Israeli soldiers were already implicated in a similar case.
