Investigators say the reservists are suspected of having access to classified information through their military service and using it to bet on future military operations.
Israeli authorities have indicted an Israeli Defense Forces (IDF) reservist and a civilian for allegedly using classified military information to place bets on the popular prediction market platform Polymarket.
Israeli authorities have indicted an Israeli Defense Force reservist and a civilian for allegedly misusing classified military information to place bets on the prediction market platform Polymarket, according to the Times of Israel.
Use of confidential information
The indictment is the result of a joint investigation by the Ministry of Defense, Shin Bet, and the Israeli Police, which led to the arrest of several suspects, including additional reservists. Investigators claim that the reservists used confidential information they learned through their military service to place bets that could lead to future military development.
Prosecutors charged one reservist and one civilian with what authorities described as serious security crimes, as well as bribery and obstruction of justice. Currently, a court-issued gag order is in place, and further details, including details of the investigation and the full scope of the interrogation, cannot be made public.
In a joint statement, defense officials warned that placing bets on classified information creates a real and serious threat to IDF operations and national security. The agency added that such acts will be treated with the utmost severity and authorities will take firm action against those involved in illegal use of classified materials.
The incident comes a month after the Shin Bet was investigating allegations that someone within the defense establishment used classified information to bet on polymarkets. The report drew attention to a Polymarket account operating under the name “ricosuave666.” This account had made some highly accurate bets related to Israeli military operations in Iran in June 2025.
Users bet tens of thousands of dollars and earned an estimated profit of about $150,000, according to the report.
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Market manipulation concerns
Polymarket’s growing popularity has attracted both casual traders and high-profile participants. Among them is Vitalik Buterin, who recently revealed that he made around $70,000 on the platform last year by betting on outcomes he believed to be highly irrational. Polymarket also hosted more casual but widely shared bets, especially during times of extreme market stress, such as a comparison showing that the odds of seeing alien life in 2025 are higher than Bitcoin’s $200,000.
While the platform has experienced rapid growth and occasional large payouts, it has also faced increased scrutiny over concerns about the potential for manipulation and misuse of insider information.
According to a recent study by researchers at Columbia University, trading patterns in polymarkets indicative of wash trading began to increase in July 2024 and peaked at nearly 60% of reported trading volume in December of the same year. The researchers found that this activity continued until late April 2025, then rose again to about 20% of the amount in early October 2025.
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