US soldier charged over Polymarket trades tied to Maduro capture

Federal prosecutors filed criminal charges this week alleging a U.S. service member used privileged, nonpublic information about the capture of Venezuelan leader Nicolás Maduro to place bets on Polymarket, a cryptocurrency-based prediction market. Prosecutors contend the trades occurred before government officials publicly announced the capture and that the soldier profited when the market resolved.

According to charging documents, the timing and pattern of the transactions pointed to access to inside information rather than ordinary speculation. Investigators traced the account used to place the bets to the service member and say some proceeds were moved into accounts linked to the defendant.

Prosecutors allege the conduct violated federal criminal statutes and military rules that prohibit misuse of nonpublic information. The soldier faces criminal counts that could include fraud and related offenses. Court filings show the defendant has pleaded not guilty and is scheduled to appear in federal court for pretrial proceedings and discovery.

Polymarket operates as a prediction market where users buy and sell contracts tied to real-world events; contract prices reflect the market’s assessment of the likelihood an outcome will occur. The platform accepts cryptocurrency and has been used by traders who position ahead of expected news or intelligence updates. Regulators and law enforcement have previously scrutinized such markets because information asymmetries can create opportunities for illicit profit when someone has access to nonpublic, market-moving information.

Military officials acknowledged they were aware of the charges and said they would review the matter under service regulations. The Department of Justice did not provide comment beyond the court filings. The defendant’s attorney has indicated plans to contest the allegations in court. The federal case remains pending while investigators and prosecutors continue their review.