A U.S. Special Forces soldier has pleaded not guilty to using classified intel to bet and win on the capture of former Venezuelan leader Nicolás Maduro.
Gannon Ken Van Dyke, 38, entered his plea in Manhattan federal court on Tuesday.
Dyke has been charged with the unlawful use of confidential government information for personal gain, theft of nonpublic government information, commodities fraud, wire fraud, and making an unlawful monetary transaction.
According to federal prosecutors, the Fort Bragg-based Army master sergeant won more than $400,000 on his bet on Polymarket, one of the largest prediction markets.
Van Dyke allegedly used his access to classified information about the operation to capture Maduro in January to win the money.
It's the first time the Justice Department has filed insider trading charges involving a prediction market.
Prosecutors also pointed out that Van Dyke had signed nondisclosure agreements centered on the operations but eventually placed a series of bets related to Maduro being out of power by Jan. 31.
Polymarket flagged the suspicious activity on its platform and reported it to the government, according to CEO Shayne Coplan.
FBI Director Kash Patel condemned the soldier’s alleged actions and said no one is above the law.
Defense lawyer Mark Geragos told reporters after Tuesday’s hearing that he planned to challenge the validity of the indictment.
"Mr. Van Dyke is an American hero, somebody who is charged unfortunately with something that is not a crime," Geragos said.
He was released on $250,000 bail and his travel was restricted to portions of New York, North Carolina, California, and points necessary to travel between.