A US soldier suspected of embezzling more than $400,000 by betting on the overthrow of Venezuelan President Nicolás Maduro has been charged with fraud, the US Department of Justice announced on Thursday.
Gannon's soldier, Ken Van Dyke, is accused of using classified information to bet on a U.S. intervention in Venezuela on Jan. 3 on the prediction website Polymarket, the department said.
Stationed at Fort Bragg military base in North Carolina, the suspect "participated in the planning and execution" of the operation to capture Nicolás Maduro and bring him to the United States, according to the statement.
"He had access to sensitive, non-public and classified information related to this operation."
Starting in early December, the 38-year-old soldier placed a total of approximately $33,000 on 13 bets on a possible U.S. intervention in Venezuela or the overthrow of President Maduro.
"As a result, Van Dyke won his bets on these contracts. In total, he allegedly made a profit of approximately $409,881," according to the Department of Justice.
He is being prosecuted for, among other things, unlawful use of confidential government information for personal gain, theft of government information, fraud and illegal monetary transactions - charges that carry a potential sentence of several decades in prison.
"Men and women who serve in uniform have access to classified information and are prohibited from using this highly sensitive information for personal financial gain," said Acting Attorney General Todd Blanche.
Prediction sites like Polymarket and Kalshi, which allow users to bet on the probability of an event occurring, have already been implicated in the conflict in the Middle East.
Accounts opened at Polymarket, for example, won $1.2 million after betting on a US attack on Iran on February 28, the day the offensive began.
In late March, a sell-off in the oil market just minutes before Donald Trump's announcement mentioning talks with Iran raised suspicions among traders and politicians, many of whom saw it as evidence of insider trading.
