Special Forces soldier in Polymarket Maduro bets case bonds out

The Army Special Forces soldier accused of making highly profitable bets on Polymarket in connection with the US military raid that captured Venezuelan leader Nicolás Maduro was released Friday. unsecured $250,000 bond After appearing in federal court in Raleigh, NC.

Master Sgt. Gannon Ken Van Dyke was ordered to appear Tuesday. US District Court in ManhattanHe was charged with wire fraud and other charges for allegedly using confidential information about the planned operation to make nearly $410,000 in bets and then trying to cover up the plan.

Polymarket’s leading rival in the prediction markets industry, Kalshi, confirmed on Friday that it had blocked Van Dyke from opening a Kalshi account.

Kalshi’s spokeswoman, Elisabeth Diana, said she could not provide details about when Van Dyke, 38, tried to open an account or why he was blocked from doing so.

Van Dyke, who has served in the Army since 2008, was arrested Thursday in North Carolina, where he was stationed at Fort Bragg.

Prosecutors said Van Dyke was involved in planning and executing the Jan. 3 raid in Caracas that resulted in U.S. Special Forces capturing Maduro and his wife and putting them on a Navy ship for shipment to the U.S., where they face federal drug charges in the same court where Van Dyke was recently indicted.

The indictment alleges that in the week before the raid, Van Dyke opened a Polymarket account and then began betting on a series of contracts on whether U.S. forces would be in Venezuela by Jan. 31, whether Maduro would leave office by then, and related questions.

He allegedly bet nearly $33,000 on more than a dozen bets, according to the indictment, which was investigated by the U.S. Attorney’s Office for the Southern District of New York.

Commodity Futures Trading CommissionRegulating prediction markets, separately Accused Van Dyke in civil complaint A lawsuit was filed alleging three violations of the Commodity Exchange Act in connection with the alleged bets.

Van Dyke’s arrest is the latest in a series of controversies surrounding prediction markets, whose growing popularity has raised concerns about gambling addiction and insiders exploiting their knowledge to place bets on event contracts.

Sen on Friday. Bernie Moreno, R-Ohio, introduced: Bill to ban US senators from trading in prediction markets.

On Wednesday, the day before Van Dyke’s arrest, Kalshi announced that he had fined and suspended a Senate candidate and two House candidates for taking action on their own campaigns.

Disclosure: CNBC and Kalshi have a business relationship that includes a minority investment in CNBC.