Master Sgt. Gannon Ken Van Dyke appeared in federal court in Raleigh, North Carolina on Friday, shackled at his hands and feet, to face charges stemming from bets he allegedly placed on the capture of Venezuelan leader Nicolás Maduro. The 38-year-old special forces soldier, stationed at Fort Bragg, was released on a $250,000 appearance bond after the hearing. He agreed to surrender his passport, limit travel to parts of New York and North Carolina, limit drinking in excess, and refrain from possessing firearms outside his active military duties.
Van Dyke spoke only briefly in court to acknowledge he understood the charges and their penalties. He is represented by a public defender and is scheduled to appear in federal court in New York City on April 28.
Federal investigators say Van Dyke placed bets totaling more than $33,000 on Polymarket, a prediction market platform, within hours of President Trump's announcement on January 3 that Maduro had been captured. Those trades netted him more than $409,000 in winnings.
Van Dyke had created his Polymarket account in December and participated in the planning and execution of the military operation to capture Maduro. The indictment alleges he violated nondisclosure agreements in which he promised never to divulge classified or sensitive information relating to military operations.
After placing the bets, Van Dyke allegedly attempted to conceal his activity. On January 6, three days after the raid, he requested that Polymarket delete his account, falsely claiming he had lost access to the associated email address. He also withdrew most of the proceeds that same day and sent them to a foreign cryptocurrency vault before depositing them into a newly created online brokerage account.
Van Dyke faces five counts: unlawful use of confidential government information for personal gain, theft of nonpublic government information, wire fraud, commodities fraud, and unlawful monetary transactions. Wire fraud carries a maximum 20-year sentence, while the other charges each carry maximum 10-year sentences.
The case marks the first time the Commodity Futures Trading Commission has filed charges of insider trading in connection with event contracts. Federal prosecutors invoked Section 746 of the 2010 Dodd-Frank Act, known colloquially as the "Eddie Murphy Rule" after the movie "Trading Places," which makes it illegal to trade commodities based on stolen or misappropriated nonpublic government information.
Jay Clayton, U.S. attorney for the Southern District of New York, stated: "Prediction markets are not a haven for using misappropriated confidential or classified information for personal gain. The defendant allegedly violated the trust placed in him by the United States Government by using classified information about a sensitive military operation to place bets on the timing and outcome of that very operation, all to turn a profit."
Van Dyke has served on active duty in the U.S. Army since 2008 and achieved the rank of master sergeant in 2023. He worked as a communications specialist supporting Joint Special Operations Command, the unit overseeing Tier 1 special mission units including Delta Force and SEAL Team Six.
Public records and social media posts reveal Van Dyke is a seasoned real estate investor living in North Carolina. He is associated with at least seven properties in the Fayetteville area and described himself on an online real estate forum as an investor with 13 years of experience. He and his wife own a business called Better Homes NC and registered another company, Better Homes NC Flips, in March 2025. He also lists a two-bedroom cottage in Beech Mountain on Airbnb. His criminal record includes only minor traffic infractions in California and North Carolina.
A neighbor, Larry Duncan, told NBC News that Van Dyke seemed guarded and standoffish. Duncan, a former Marine, said he suspected Van Dyke was in special forces based on how he carried himself.
Polymarket CEO Shayne Coplan said the company flagged the suspicious trades and cooperated with the Justice Department investigation. "We flagged this, referred it, and cooperated throughout the process. This happens constantly behind the scenes, despite what many are led to believe," Coplan stated on X. He argued that prediction markets allow authorities to easily identify bad actors because all trades are public.
Another Polymarket user made roughly $550,000 through bets related to the U.S. striking Iran and the removal of Ayatollah Ali Khamenei. In February, two Israeli soldiers were charged in connection with suspected use of classified information to place bets on Polymarket.
President Trump compared Van Dyke's actions to Pete Rose betting on his own baseball team, a reference to the Hall of Famer banned from baseball for gambling. "That's like Pete Rose betting on his own team," Trump told reporters in the Oval Office. "I'll look into it."
When asked about broader concerns regarding federal employees making insider trading bets, Trump said "the whole world, unfortunately, has become somewhat of a casino." He expressed skepticism of prediction markets generally, stating he was "never much in favor of it" and is "not happy with any of that stuff."
Master Sgt. Gannon Ken Van Dyke appeared in federal court in Raleigh, North Carolina on Friday, shackled at his hands and feet, to face charges stemming from bets he allegedly placed on the capture of Venezuelan leader Nicolás Maduro. The 38-year-old special forces soldier, stationed at Fort Bragg, was released on a $250,000 appearance bond after the hearing. He agreed to surrender his passport, limit travel to New York and North Carolina, restrict his alcohol consumption, and refrain from possessing firearms outside his active military duties.
Van Dyke spoke only briefly in court to acknowledge he understood the charges and their penalties. He is represented by a public defender and is scheduled to appear in federal court in New York City on April 28.
Federal investigators say Van Dyke placed bets totaling more than $33,000 on Polymarket, a prediction market platform, within hours of President Trump's announcement on January 3 that Maduro had been captured. The bets included a $32,537 wager on Maduro being "out by January 31, 2026," along with three additional trades on related outcomes. Those trades netted him more than $409,000 in winnings.
Van Dyke had created his Polymarket account in December and participated in the planning and execution of the military operation to capture Maduro. The indictment alleges he violated nondisclosure agreements in which he promised never to divulge classified or sensitive information relating to military operations.
After placing the bets, Van Dyke allegedly attempted to conceal his activity. On January 6, three days after the raid, he requested that Polymarket delete his account, falsely claiming he had lost access to the associated email address. He also withdrew most of the proceeds that same day and sent them to a foreign cryptocurrency vault before depositing them into a newly created online brokerage account.
Van Dyke faces five counts: unlawful use of confidential government information for personal gain, theft of nonpublic government information, wire fraud, commodities fraud, and unlawful monetary transactions. Wire fraud carries a maximum 20-year sentence, while the other charges each carry maximum 10-year sentences.
The case marks the first time the Commodity Futures Trading Commission has filed charges of insider trading in connection with event contracts. Federal prosecutors invoked Section 746 of the 2010 Dodd-Frank Act, known colloquially as the "Eddie Murphy Rule" after the movie "Trading Places," which makes it illegal to trade commodities based on stolen or misappropriated nonpublic government information.
Jay Clayton, U.S. attorney for the Southern District of New York, stated: "Prediction markets are not a haven for using misappropriated confidential or classified information for personal gain. The defendant allegedly violated the trust placed in him by the United States Government by using classified information about a sensitive military operation to place bets on the timing and outcome of that very operation, all to turn a profit."
Van Dyke has served on active duty in the U.S. Army since 2008 and achieved the rank of master sergeant in 2023. He worked as a communications specialist supporting Joint Special Operations Command, the unit overseeing Tier 1 special mission units including Delta Force and SEAL Team Six.
Public records and social media posts reveal Van Dyke is a seasoned real estate investor living in North Carolina. He is associated with at least seven properties in the Fayetteville area and described himself on an online real estate forum as an investor with 13 years of experience. He and his wife own a business called Better Homes NC and registered another company, Better Homes NC Flips, in March 2025. He also lists a two-bedroom cottage in Beech Mountain on Airbnb. His criminal record includes only minor traffic infractions in California and North Carolina.
A neighbor, Larry Duncan, told NBC News that Van Dyke seemed guarded and standoffish. Duncan, a former Marine, said he suspected Van Dyke was in special forces based on how he carried himself.
Polymarket CEO Shayne Coplan said the company flagged the suspicious trades and cooperated with the Justice Department investigation. "We flagged this, referred it, and cooperated throughout the process. This happens constantly behind the scenes, despite what many are led to believe," Coplan stated on X. He argued that prediction markets allow authorities to easily identify bad actors because all trades are public.
The case has drawn scrutiny to insider trading on prediction platforms more broadly. Another Polymarket user made roughly $550,000 through bets related to the U.S. striking Iran and the removal of Ayatollah Ali Khamenei. In February, two Israeli soldiers were charged in connection with suspected use of classified information to place bets on Polymarket.
President Trump compared Van Dyke's actions to Pete Rose betting on his own baseball team, a reference to the Hall of Famer banned from baseball for gambling. "That's like Pete Rose betting on his own team," Trump told reporters in the Oval Office. "I'll look into it."
When asked about broader concerns regarding federal employees making insider trading bets, Trump said "the whole world, unfortunately, has become somewhat of a casino." He expressed skepticism of prediction markets generally, stating he was "never much in favor of it" and is "not happy with any of that stuff."
Rep. Anna Paulina Luna called for Trump to pardon Van Dyke, while retired Lt. Gen. Keith Kellogg said of the soldier's alleged conduct: "You can't be that stupid."
Highlighted text was flagged by the council. Tap to see feedback.
