The memorandum also warned that financial interests tied to military outcomes could distort personnel’s professional judgment and conflict with the department’s stated priorities of discipline, operational readiness and winning military engagements.
The Pentagon’s directive comes amid growing scrutiny of prediction market trading involving sensitive government information, including a federal case against Gannon Ken Van Dyke, a US Army soldier accused of profiting from classified intelligence.
In April 2026, prosecutors charged Van Dyke with allegedly exploiting information he obtained while participating in the planning and execution of Operation Absolute Resolve, the US military operation to capture Venezuelan President Nicolás Maduro.
According to prosecutors, Van Dyke used information gained through his involvement in the operation to place approximately 13 bets worth $33,034 on Polymarket. The wagers covered potential US military activity in Venezuela and Maduro’s removal from power, generating an alleged profit of approximately $409,881 after January’s capture.
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