Federal prosecutors in Manhattan have accused a U.S. Military soldier of turning secret army information right into a profitable betting scheme, saying he pocketed greater than $400,000 by wagering on a labeled operation.
Based on courtroom filings, Van Dyke was stationed at Fort Bragg and had entry to labeled planning supplies associated to the operation, which aimed to seize Maduro. He had signed agreements explicitly barring him from disclosing or utilizing that data.
Bets on Maduro’s seize
Prosecutors say he created a Polymarket account in late December 2025 and positioned round 13 bets. Every wager backed outcomes tied to U.S. army involvement in Venezuela and Maduro’s removing from energy. In whole, authorities say he staked about $33,000, persistently betting “YES” on these eventualities.
Occasions unfolded shortly. Within the early hours of Jan. 3, 2026, U.S. particular forces captured Maduro in Caracas. As soon as the operation grew to become public, the prediction markets resolved in Van Dyke’s favor, bringing him roughly $409,881, in response to prosecutors.
Prosecutors: “Clear Insider Buying and selling”
Prediction markets usually are not a haven for utilizing misappropriated confidential or labeled data for private achieve,” Clayton mentioned, calling the alleged conduct a direct breach of federal belief and nationwide safety obligations.
Prosecutors argue that Van Dyke’s actions meet the definition of insider buying and selling in substance, if not in conventional market type, as a result of they relied on nonpublic army intelligence to generate revenue. They are saying the trades weren’t primarily based on evaluation or hypothesis, however on advance information of a real-world labeled operation’s timing and end result.
Alleged makes an attempt to hide funds
Based on courtroom filings, Van Dyke allegedly took steps to obscure the supply and motion of his winnings shortly after the operation grew to become public. Prosecutors say he transferred funds via cryptocurrency channels designed to masks transaction historical past, together with routing belongings via a foreign-based digital pockets service earlier than transferring them right into a brokerage account.
Authorities additionally allege he tried to delete or deactivate his Polymarket account and modified associated crypto account particulars in an effort to disrupt the monetary path.
Blanche underscored the federal government’s place on misuse of labeled entry, stating that service members are entrusted with delicate intelligence solely to execute missions, to not derive private monetary profit from it.
Rising Scrutiny of Prediction Markets
The case arrives amid growing scrutiny of prediction markets and event-based buying and selling platforms. Regulators and lawmakers have raised issues about insider entry to politically or militarily delicate data getting used for revenue.
In a separate case, political candidates have additionally confronted penalties tied to buying and selling on election-related contracts, underscoring broader issues about market integrity.
FBI, DOJ response and potential sentencing
“At present’s announcement makes clear nobody is above the legislation,” Patel mentioned, including that the FBI would act to guard nationwide safety and labeled data.
If convicted, Van Dyke faces as much as 20 years in jail on the wire fraud rely, together with extra penalties on associated costs. Prosecutors say sentencing would finally be decided by a decide.
Featured picture: Wesley Tingey/Unsplash
