NEW YORK – A U.S. Army soldier involved in a scheme to capture Venezuela’s then-leader Nicolas Maduro pleaded not guilty in Manhattan federal court on Tuesday to using confidential information to place bets on a presentation through the prediction market platform PolyMarkets.
Gannon Ken Van Dyke, 38, has been charged with unlawful use of confidential government information for personal gain, theft of non-public government information and goods fraud, among other charges.
According to prosecutors, Van Dyke allegedly wagered $33,034 for a total payout of more than $400,000.
Following his plea Tuesday, U.S. District Judge Margaret Garnett, a Biden appointee, released him on a $250,000 personal recognizance bond.
According to one of his attorneys, Zack Intrater, Van Dyke is on leave from the Army. “The final status is uncertain at this time,” Intrater said during the hearing.
Van Dyke’s case is notable not just because it is linked to one of the most high-profile operations in recent military history – capturing Maduro, who is himself being prosecuted by the Manhattan U.S. Attorney’s office – but also because it will test the government’s ability to prosecute an insider trading case within prediction markets.
Those markets are coming under increased scrutiny as their popularity grows, fueling concerns about their lack of regulation and questions from lawmakers about how they could be exploited for illegal activity.
In addition to Intrater, Van Dyke’s legal team Tuesday included Mark Geragos, one of the country’s best-known criminal defense attorneys, and Tina Glandian, a partner in Geragos’ firm.
Van Dyke’s next court date is June 8.
