Last updated on March 9th, 2026 at 10:57 am
Israeli security agencies have arrested and indicted a military reservist and a civilian for allegedly exploiting classified military information to place lucrative bets on the prediction market Polymarket tied to potential military action against Iran, authorities said on Thursday.
In a joint statement, the Ministry of Defence, the internal security service Shin Bet, and the Israel Police said investigators found that the reservist accessed sensitive information through his role in the Israel Defense Forces (IDF) and shared it with a civilian, who then used it to make wagers on Polymarket. Prosecutors filed criminal charges, including security-related offences, bribery and obstruction of justice.
Israel has arrested several people for allegedly using classified information to place bets on Israeli military operations on Polymarket https://t.co/or3fEHcueC
— The Wall Street Journal (@WSJ) February 12, 2026
A court partially lifted a gag order on the case, allowing limited publication of details. Officials stressed that no senior defence officials are implicated in the misuse of classified data.
Allegations linked to Iran conflict picks
Earlier media reports said security officials were reviewing unusual Polymarket activity, including bets on whether Israel would strike Iran in June 2025, selections that reportedly yielded significant profits. Though it’s not confirmed if the charged individuals were behind those specific accounts, one user previously reportedly won over $150,000 on bets related to the timing and execution of military operations.
Lawmakers and regulators around the world have warned that such platforms could be exploited by people with access to sensitive information, potentially undermining market integrity.
Security officials call it a serious threat
In their statement, Israeli authorities described the alleged betting based on secret information as a “real security risk” to military operations and national security, underscoring the broader implications of insider activity on open, crypto-based platforms. The reservist and civilian will remain in custody as legal proceedings continue.
The reservist’s lawyer has reportedly criticised the indictment as flawed, and some charges, such as those alleging harm to national security, have been dropped, according to comments made to international media.
Meanwhile, the Chief Executive Officer of Kalshi, Tarek Mansour, pledged his support for a new legislative proposal to ban government officials from participating in prediction markets.
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