A U.S. Army Special Forces soldier was arrested Thursday on charges that he exploited classified details about a military mission targeting Venezuelan leader Nicolas Maduro to place highly profitable bets on a prediction market platform, allegedly earning more than $400,000.

According to the Justice Department, Master Sgt. Gannon Ken Van Dyke played a role in both the planning and execution of “Operation Absolute Resolve,” a January 3 raid on Maduro’s residence in Caracas. Investigators say he had access to “sensitive, nonpublic, classified information” connected to the operation.

Prosecutors allege that roughly a week before the mission, the 38-year-old placed wagers exceeding $33,000 on Polymarket, a platform where users bet on real-world outcomes, including developments involving Maduro and potential U.S. military action in Venezuela.

Authorities say the bets yielded approximately $409,000 in profits. They also claim Van Dyke attempted to conceal both his identity and the source of his gains by routing the money through foreign cryptocurrency accounts.

Van Dyke has been charged with three counts of violating the Commodity Exchange Act, one count of wire fraud, and one count of engaging in an unlawful monetary transaction.

If convicted on all counts, he could face a maximum sentence of 60 years behind bars.

The case is being prosecuted by the United States Attorney’s Office for the Southern District of New York.

“Prediction markets are not a haven for using misappropriated confidential or classified information for personal gain,” said US Attorney Jay Clayton said in a statement. “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.

“That is clear insider trading and is illegal under federal law.”

{Matzav.com}