Two detained in Israel for allegedly exploiting classified military data on Polymarket
Two individuals, including a military reservist and a civilian, face arrest in Israel for allegedly leveraging secret military intelligence to wager on prediction markets concerning strikes against Iran.
Two individuals have been arrested and indicted by Israeli authorities for purportedly leveraging confidential intelligence to wager on the Polymarket prediction platform concerning potential Israeli military operations against Iran.
According to a collaborative statement released on Thursday by Israel's Ministry of Defense, the Shin Bet internal security service, and national police forces, both a reservist serving in the military and a civilian have been taken into custody following an investigation that revealed the reservist had gained access to classified intelligence for the purpose of placing these wagers.
The state prosecutor's office intends to file criminal charges encompassing security-related violations, bribery offenses, and obstruction of justice. Officials confirmed that the military reservist held a position within the Shin Bet security service.
The prediction markets sector has experienced significant insider trading controversies throughout this year, most notably when a Polymarket participant successfully wagered that Nicolás Maduro would be removed from Venezuela's presidency just hours prior to his capture by United States military forces, generating approximately $400,000 in profits.
Last month, Kan, an Israeli government-owned news organization, disclosed that a Polymarket account operating under the username "ricosuave666" had executed multiple wagers connected to Israeli military strikes targeting Iran during June 2025, though authorities have not confirmed whether those now under arrest control this specific account.
According to reports, this account had placed wagers totaling tens of thousands of dollars and accumulated profits exceeding $152,300 through betting on various prediction markets including "Israel strike on Iran on June 24" and "Israel military action against Iran by Friday," with the second wager alone generating more than $128,700 in winnings.
Prediction markets lead to real security risks when misused
Legislative authorities across the globe have voiced apprehensions that insider intelligence could be manipulated within prediction markets, compromising the integrity of these platforms and diminishing confidence among the general public.
According to Israel's Ministry of Defense, wagers placed using confidential intelligence represent a "real security risk for Israel Defense Forces activity and national activity," further stating that Israeli military forces, security agencies and law enforcement bodies will maintain their commitment to prosecuting anyone who exploits classified intelligence in violation of the law.
Legal counsel representing the arrested reservist informed Bloomberg that the indictment contains significant "flawed" elements, while also observing that prosecutors have withdrawn the charge related to causing harm to national security.