Two indicted for using classified info to place online bets on military operations

An Israeli military reservist and a civilian were indicted this week for using classified information to place bets regarding military operations on the popular Polymarket prediction market, authorities announced on Thursday.

The investigation, conducted jointly by the Director of Security of the Defense Establishment, the Shin Bet domestic security agency and the Israel Police, led to the arrest of several suspects — including reservists — who allegedly placed bets on Polymarket “based on classified information to which the reservists were exposed by virtue of their military roles,” a joint statement said.

The reveal comes weeks after Kan news reported that security agencies were investigating suspicions that individuals within the defense establishment had used classified information to place bets on Polymarket, including on the timing of Israel’s opening strike on Iran in June 2025’s 12-day war.

Authorities did not release any information on Thursday on the nature of the bets.

They said indictments had been filed on Monday against one reservist and one civilian for “severe security offenses,” as well as bribery and obstruction of justice. Prosecutors have requested that the suspects be kept in detention until the end of the legal proceedings.

Further details surrounding the case remained barred from publication under a court-issued gag order.

“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 joint statement said, adding that authorities view “the acts attributed to the defendants with utmost severity and will act decisively to thwart and bring to justice anyone involved in the unlawful use of classified information.”

The IDF said it viewed the case “gravely,” but stressed that “no operational harm was caused.”

“This constitutes a severe ethical failure and a clear crossing of a red line,” the military said in a statement, adding that the alleged actions “are not in line with IDF values and what is expected of servicemembers.”

It said it “steps have been taken and procedures will be sharpened across all IDF units, with the aim of preventing the recurrence of similar cases.”

Last month, Kan said a user who went by the name ricosuave666 placed several bets in June 2025 with suspicious accuracy regarding Israeli military operations in Iran, wagering tens of thousands of dollars and making a profit of around $150,000.

Polymarket is one of the largest prediction markets in the world, where users can  place bets using cryptocurrency, debit or credit cards, and bank transfers.

The commercial use of prediction markets has skyrocketed in recent years, opening the door for people to wager their money on the likelihood of a growing list of future events. But despite some eye-catching windfalls, many traders still lose money every day. There have been accusations of manipulation and insider trading by users of the platform.

Last month, the bulk of one trader’s bids were made mere hours before US President Donald Trump announced the surprise nighttime raid that led to former Venezuelan president Nicolás Maduro’s capture, fueling online suspicions of potential insider trading because of the timing of the wagers and the trader’s narrow activity on the platform.

Tens of millions of dollars have also been bet on the timeline for a possible US fresh strike on Iran.

Users have lost and won tens of millions of dollars on the platform over the past few months as dates they wagered for strikes came and passed. Odds are highest for an American airstrike on Iran by June 30 this year at 53 percent, under 1% if it happens this Thursday, and 1% on Friday.

Further millions have been placed on the possibility of the ousting of Iran’s Supreme Leader Ali Khamenei.