Investigators say reservists accessed classified information through the service and allegedly used it to bet on future military operations.
Israeli authorities have charged an Israeli Army (IDF) reservist and a civilian for allegedly using classified military information to place bets on the popular prediction market platform Polymarket.
According to The Times of Israel, Israeli authorities have charged an IDF reservist and a civilian on suspicion of exploiting classified military information to place bets on the prediction market platform Polymarket.
Use of classified information
The charges to follow a joint investigation by the Ministry of Defense, the Shin Bet and the Israeli Police, which led to the arrest of several suspects, including additional reservists. Investigators allege that reservists used sensitive information they were exposed to during their military duties to make bets related to future military developments.
Prosecutors have filed charges against a reservist and a civilian for what authorities described as serious security crimes, along with bribery and obstruction of justice. A court-issued silence order is currently in effect, preventing further details about the investigation from being released, including operational details and the full scope of those questioned.
In a joint statement, the defense establishment warned that placing bets based on classified information poses a real and serious threat to IDF operations and state security. The agencies added that such behavior will be treated with the utmost severity and authorities will take decisive action against anyone involved in the unlawful use of classified material.
The case comes a month after the Shin Bet investigated suspicions that someone within the defense establishment had used classified information to bet on Polymarket. That report drew attention to a Polymarket account operating under the name “ricosuave666,” which in June 2025 placed several highly accurate bets regarding Israeli military operations in Iran.
According to the report, the user wagered tens of thousands of dollars and made an estimated profit of around $150,000.
You might also like:
Concerns about market manipulation
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 that he believed were highly irrational. Polymarket also ran more light-hearted but widely shared bets, such as comparisons showing that the odds of confirming extraterrestrial life by 2025 were greater than Bitcoin reaching $200,000, especially during periods of extreme market stress.
While the platform has seen rapid growth and occasional large payouts, it has also come under scrutiny due to concerns related to manipulation and possible insider trading.
According to a recent study by researchers at Columbia University, transaction patterns on Polymarket indicative of laundry trading began to increase in July 2024 and peaked at nearly 60% of reported volume in December of the same year. Researchers found that activity continued until the end of April 2025, later increasing again to around 20% of volume in early October 2025.
SECRET PARTNERSHIP BONUS for CryptoPotato readers: Use this link to register and unlock $1,500 in exclusive BingX Exchange rewards (limited time offer).
#Classified #Information #Crypto #Betting #Silence #Order #Israeli #Polymarket #Security #Scandal