U.S. Army Special Forces Sergeant Gannon Ken Van Dyke has been arrested for allegedly using classified information to profit over $409,000 on the prediction market Polymarket. The Department of Justice charged Van Dyke with insider trading after he reportedly used intelligence from a military operation targeting Venezuelan President Maduro to place bets on Maduro's ouster. This marks the first insider trading case involving prediction markets prosecuted by the DOJ and the first time the CFTC has applied the "Eddie Murphy Rule" against misuse of nonpublic government information. Van Dyke allegedly placed $33,000 in bets on Polymarket, predicting outcomes such as "Maduro steps down before January 31," resulting in a significant profit. The CFTC has filed a civil lawsuit seeking to reclaim profits and impose penalties. The case highlights regulatory challenges as Polymarket operates internationally on the Polygon blockchain, complicating U.S. oversight. Polymarket has cooperated with authorities, emphasizing its commitment to identifying users trading on confidential information.