Israel charges two over Polymarket bets on military secrets

Israeli authorities have arrested and indicted two individuals — a military reservist in the Israel Defense Forces and a civilian — for allegedly using classified military information to place bets on the U.S.-based prediction market Polymarket regarding potential military operations.

According to a joint statement by the Israel Ministry of Defense, the domestic security service Shin Bet, and the Israel Police, the reservist accessed secret operational information through his military role and shared it with the civilian, who then used the information to inform wagers. Prosecutors have filed charges including severe security offenses, bribery, and obstruction of justice.

The alleged bets reportedly involved prediction markets tied to Israel’s military actions and timeline, including forecasts about operations related to Iran, with winnings estimated around $150,000 according to local reporting. Officials have warned that exploiting classified data for financial gain poses a significant security risk and undermines operational integrity.

The case highlights growing concern about insider trading risks in prediction markets, especially when tied to confidential national security information. Legal proceedings are ongoing, and authorities say they will pursue anyone who illegally uses secret information for betting or profit.