U.S. soldier accused of betting on Maduro raid, winning US$400,000, pleads not guilty

Gannon Ken Van Dyke walks near a federal court building in New York on April 28. (Seth Wenig/AP via CNN Newsource)

A special forces soldier involved in the capture of Venezuelan President Nicolás Maduro pleaded not guilty Tuesday to misusing classified information about the operation to make over $400,000 in illegal profits.

Gannon Ken Van Dyke, a 38-year-old active duty soldier stationed at Fort Bragg, appeared in civilian clothes before Judge Margaret Garnett in New York.

The case is the first time federal prosecutors have charged anyone in connection with bets placed on a prediction market, the popular space where people bet “yes” or “no” on outcomes including sports games, Taylor Swift’s wedding and geopolitical events.

“Mr. Van Dyke is an American hero,” said Mark Geragos, an attorney for Van Dyke, after the arraignment. Geragos said Van Dyke has been charged “with something that is not a crime” and vowed to challenge the “core” of the allegations.

Van Dyke was ordered to surrender his passport and firearms and released on a $250,000 bond. He is due back in court on June 8.

• RELATED: Soldier charged with using classified intel to win US$400K on Maduro raid is being released on bail
• RELATED: U.S. special forces soldier arrested after allegedly winning US$400,000 on Maduro raid

Zach Intrater, another of Van Dyke’s attorneys, told the judge the solider is currently on leave.

“As of right now he’s still associated with the military,” Intrater said.

Prosecutors allege Van Dyke was involved in the planning and execution of the unprecedented military action in the early hours of January 3, when US soldiers extracted Maduro and his wife from the presidential palace in Caracas under heavy gunfire.

Authorities allege Van Dyke used his knowledge of the classified operation to place bets on Polymarket in the days and hours leading up to the operation. Van Dyke allegedly placed $32,000 in bets on US involvement in Venezuela, including that Maduro would be “out” of Venezuela by the end of January. After the successful raid, Van Dyke’s bet paid off. He made over $400,000 in profits.

Van Dyke allegedly transferred the windfall to a foreign cryptocurrency vault before moving them into a newly created online brokerage account. After news reports flagged the wildly successful bet, the indictment alleges, Van Dyke asked Polymarket to delete his account.

He was photographed just after the operation on “what appears to be the deck of a ship at sea, at sunrise wearing U.S. military fatigues, and carrying a rifle, standing alongside three other individuals wearing U.S. military fatigues,” according to the indictment.

Van Dyke was arrested Thursday night and charged with unlawful use of confidential government information for personal gain, theft of nonpublic government information, commodities fraud, wire fraud, and making an unlawful monetary transaction. Friday, Van Dyke made his first appearance in federal court in North Carolina and was released on $250,000 bond.

The Maduro bet is one of several suspicious trades that have attracted attention. Lawmakers and media reports have highlighted several huge trades in the oil futures market that preceded announcement of key developments in the US-Iran conflict.

After Van Dyke’s arrest, President Donald Trump said in response to questions that he was concerned about the growing global trend of placing bets on geopolitical events, saying the world has become a “casino.” He added, “Now, I think that I’m not happy with it.”

By Kara Scannell, CNN