DOJ arrests US soldier in first Polymarket insider trading case

DOJ arrests U.S. Special Forces master sergeant for insider trading on Polymarket. Prosecutors say he used classified intel on the Maduro raid and made about $404k. The CFTC filed parallel civil charges.

Title: DOJ arrests Special Forces soldier over Polymarket insider trading tied to Maduro operation

- DOJ says Gannon Ken Van Dyke, 38, accessed classified briefings and bet on related Polymarket markets, netting ~$404,222 on ~$33,933 staked WSJ.
- Indictment unsealed in SDNY. Charges include unlawful use of confidential government info, theft of nonpublic info, commodities fraud, wire fraud, and unlawful monetary transaction. Three CEA counts carry up to 10 years each WSJ.
- Investigators allege he opened a Polymarket account on December 26, 2025, placed 13 bets on Venezuela outcomes, and won his largest position by wagering $32,537 on “Maduro removed by Jan 31, 2026,” returning 1,242% WSJ.
- Total winnings were converted to USDC and sent to offshore accounts, according to the indictment summary WSJ.
- DOJ cites post-trade deletions and account changes as evidence of guilt awareness after reports of abnormal activity WSJ.
- CFTC brings the first civil action of its kind under its event contract jurisdiction, alleging over $400k profit on Venezuela-related outcomes WSJ.
- Media also reported the arrest and identity details as the case broke Bill Melugin on X.

Source: Reuters