Israeli Reservist Accused of Using Classified Military Intel for Polymarket Wagers

An IDF reservist and an Israeli civilian face indictments at Tel Aviv for “serious security offenses” after allegedly using classified military information to bet on military operations on the Polymarket prediction platform.A joint investigation by the Defense Ministry, Shin Bet, and Israel Police led to the arrests for the alleged bets “based on classified information to which the reservists were exposed by virtue of their military roles,” according to a joint statement released by the agencies.The two suspects — who were not named — were also indicted on bribery and obstruction charges. Prosecutors asked the court to detain the pair until after their trials, according to the Jerusalem Post.The court partially lifted a gag order on the case to allow a general statement about the allegations but few other details were made available.The statement confirmed that the investigation was launched over suspicions that a group of reservists had been betting on the timing of military operations using classified intelligence. “The defense establishment emphasizes that placing such bets, based on secret and classified information, poses a real security risk to IDF operations and to the security of the state,” the statement said.Public television broadcaster Kan reported in January that an anonymous user earned more than $152,000 after placing a series of bets last June correctly predicting the timing of Israeli strikes on Iran. The four correct bets were: “Israel will strike Iran on Friday,” “Israel will strike Iran by the end of June,” “Israel will strike in Iran by July,” and “Israel to announce end of Iran operation by July.”Israel launched a series of attacks on Iran in mid-June that killed several high-ranking military officials.Other traders suspected the bettor had access to nonpublic information. The account went dormant for six months after the Iran bets but resumed trading last month, according to the Wall Street Journal.Fast-growing prediction sites, like Kalshi and Polymarket, allow users to place bets on the future direction of events like presidential elections, but military actions are also popular for bets. The platforms are built on blockchain infrastructure linked to crypto wallets to mask the identities of users.There have been ongoing concerns in America that people with inside information are taking advantage of other gamblers to lack access to that information.A user picked up more than $400,000 in earnings after placing a $30,000 Polymarket wager that Nicolás Maduro would be out as the Venezuelan leader. The bet came just hours before the American military operation that captured Mr. Maduro.Congressman Ritchie Torres introduced legislation to crack down on insider trading on prediction markets. The bill prohibits federal elected officials, political appointees, executive branch employees, and congressional staff from buying, selling, or exchanging prediction market contracts tied to government policy, government action, or political outcomes when they possess material nonpublic information.The sites insist that they are not sportsbooks and, therefore, not subject to gambling rules in America. Some states disagree and have filed lawsuits against the companies.

Israeli Reservist Accused of Using Classified Military Intel for Polymarket Wagers

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