US Army Sergeant Pleads Not Guilty in Court to Polymarket Insider Trading Charges Using Classified 'Maduro Capture' Info

On April 28, 2026, Master Sergeant Gannon Ken Van Dyke of the US Army Special Forces (Green Berets) appeared in Manhattan federal court and pleaded not guilty to Polymarket insider trading charges. This case marks the first attempt by authorities to prosecute insider trading in a decentralized prediction market, with the Southern District of New York (SDNY) and the Commodity Futures Trading Commission (CFTC) taking parallel enforcement actions. The indictment against Sergeant Van Dyke was unsealed on April 23, alleging that he used military secrets for personal financial gain.

The defendant directly participated in the planning and execution phases of the operation and utilized sensitive non-public information obtained through this to place bets on Polymarket.

Operation 'Absolute Resolve,' which triggered the charges, was a secret mission carried out in the early hours of January 3, 2026, to capture Venezuelan President Nicolás Maduro. Sergeant Van Dyke, based at Ft. Bragg, North Carolina, was found to be in a position to access classified information regarding the timing and success of the operation. Prosecutors explained that he knew the outcome before it was publicly announced and used it for trading.

Generating $400,000 in Profits Using Classified Information

According to prosecutors, Sergeant Van Dyke purchased a large number of related contracts on Polymarket just before the news of Maduro's capture broke. He is estimated to have made approximately $400,000 in profit through these trades. Authorities seized $415,511 remaining in his brokerage account as of April 21, 2026, which was identified as proceeds from the Polymarket trades.

• First federal prosecution case for insider trading within a prediction market
• A unique form of crime combining military secrets and the digital asset market
• Expression of strong market surveillance intent through cooperation between the SDNY and CFTC
• A precedent for holding users of decentralized platforms legally accountable

Polymarket continues to experience unprecedented growth, recording a trading volume of $9.7 billion in March 2026, with 24-hour activity reaching $385.6 million. This rapid market growth has led federal regulators to view prediction markets as a new frontier for law enforcement. In fact, unusual trading activity on related contracts was detected on Polymarket immediately after Maduro's capture, triggering an intensive investigation by authorities.

This trial is expected to provide important legal guidelines for the scope of information usage within decentralized finance (DeFi) and prediction markets in the future. A key issue is how traditional insider trading laws will be applied to blockchain-based platforms. Sergeant Van Dyke faces not only punishment in civil court but also potential military disciplinary action, and the final verdict is expected to be a significant milestone in the history of digital asset regulation.