US Soldier Accused of Betting on Classified Information on Polymarket

(AsiaGameHub) –   Following a Polymarket case connected to Nicolas Maduro that led to criminal charges against a U.S. Army Special Forces soldier, federal and state officials are tightening restrictions on prediction market trading by public employees.

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Good to Know

• DOJ reports Gannon Ken Van Dyke earned roughly $400,000 from trading on Polymarket.
• The trades were linked to the January capture of Nicolas Maduro.
• New York now prohibits state employees from using confidential information in event contracts.

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The Maduro Case Becomes a Test for Prediction Market Rules

New York Governor Kathy Hochul was the first to act on regulations for public employees this week, signing an executive order that bans state workers from using confidential information to trade event contracts. The White House had already warned its own staff against similar conduct on prediction market platforms. Hochul said:

“Profiting from bets using insider information is straightforward corruption, no question. Our actions will guarantee that public servants work for the people they represent, not for their own personal financial gain.”

The federal case that has given this debate real urgency centers on Gannon Ken Van Dyke. According to ABC News, DOJ alleges the special forces soldier placed more than $33,000 worth of Polymarket trades ahead of the removal of Venezuelan leader Nicolas Maduro. Prosecutors state he later profited roughly $400,000 from the trades.

Maduro and his wife were extracted by U.S. forces in January. Shortly after the operation, traders and outside observers raised concerns about insider trading surrounding Polymarket contracts tied to the event. DOJ alleges Van Dyke had access to nonpublic government information and used it to earn personal profit.

The indictment includes multiple federal charges, such as unlawful use of confidential information for personal gain, theft of nonpublic government information, commodities fraud, and wire fraud. Authorities also say Van Dyke attempted to delete his Polymarket account after concerns about the trades became public.

The indictment stated:

“Instead of safeguarding that information as he was required to do, Van Dyke chose to use that classified information to place trades on a prediction market platform for his own personal profit.

“Van Dyke later tried to hide his illegal use of classified U.S. Government information by attempting to cover up the source of his illegal proceeds and disguise his connection to the accounts linked to the unlawful trades.”

Polymarket has faced other allegations of misuse of insider information in recent months. Markets connected to Iranian Supreme Leader Ayatollah Ali Khamenei drew similar concerns. In December, one user correctly predicted 22 out of 23 Google search-related markets on Polymarket and collected more than $1 million in a single day.

Congress has also joined the debate. Rep. Ritchie Torres introduced a bill in January that would ban federal employees from using prediction markets, adding another layer to the growing dispute over event contracts, public officials, and confidential information.