The arrest of Army soldier Gannon Ken Van Dyke, accused of using classified information to place a prediction market bet on the capture of Venezuelan President Nicolás Maduro, has raised concerns about the legal and ethical dangers of prediction markets in high-stakes situations. National security experts suggest that these markets may not be enough to prevent adversaries from exploiting public indicators in real time. The arrest could be the most high-profile case to confirm these concerns. Van Dykes allegedly made over $400,000 in profits from wagers and attempted to conceal his identity by asking Polymarket to delete his account. Despite backlash, Polymarket has implemented restrictions on insider trading and suspended three political candidates who bet on their own races.