Gannon Ken Van Dyke appeared shackled at his hands and feet as federal prosecutors outlined the charges and maximum penalties he faces. He spoke briefly to say he understood the charges and requested court-appointed counsel.
According to the indictment unsealed by the Justice Department, Gannon Ken Van Dyke was part of a highly classified team that planned and carried out an operation in Venezuela that led to the capture of Nicolas Maduro.
Prosecutors allege he used that inside information to make more than $400,000 betting on the prediction market Polymarket. The indictment says he made those trades while having direct knowledge of U.S. military plans and later attempted to move his winnings into cryptocurrency to conceal their origin.
Van Dyck waived his right to an identity hearing and signed an unsecured $250,000 personal appearance bond. Under the release conditions, he is restricted to travel within the Eastern District of North Carolina and the Southern and Eastern districts of New York, must surrender his passport and report to the probation office. He is prohibited from possessing a firearm unless directed by the U.S. government as part of his active duty service.
Van Dyke is charged with three counts of violating the Commodity Exchange Act, each carrying a potential sentence of up to 10 years in prison, and one count of wire fraud, which carries a maximum penalty of 20 years.
He was remanded to the U.S. Marshals Service for processing and is expected to be released under those conditions. His next court date is April 28 in New York.
The case comes as Polymarket and other betting platforms have already faced criticism over political candidates betting on their own elections, and after the White House ordered staffers to stop wagering on developments related to the war in Iran.
ABC11's Sean Coffey contributed to this report.
This is a developing story. Please check back for updates.