On February 13, Israeli authorities arrested two individuals suspected of using confidential information to conduct military-related trades on Polymarket, including a reservist and a civilian. A joint statement from the Israel Defense Forces, Shin Bet, and the police said the two are suspected of placing bets using classified information, and prosecutors have filed criminal charges for security crimes, bribery, and obstruction of justice.
It is understood that the reservist is employed by Shin Bet, and the arrest highlights the potential security risks associated with prediction markets. Earlier this year, several insider trading cases on Polymarket drew attention, such as a user who successfully bet hours before Venezuelan President Nicolás Maduro was captured by U.S. forces, earning approximately $400,000.
The Israel National News reported that an account named “ricosuave666” placed multiple bets in June 2025 on Israel’s military actions against Iran, earning over $152,300, including more than $128,700 from bets on “Israel taking military action against Iran before Friday.” It is unclear whether the arrested individuals are connected to this account.
The Israel Ministry of Defense emphasized that gambling based on classified information poses a serious threat to Israel’s military operations and national security, and the military and security agencies will continue to investigate such activities. Legislators worldwide have also expressed concerns that prediction markets could be misused, potentially undermining market integrity and public trust.
The lawyer for the arrested serviceman told Bloomberg that the indictment has flaws and that charges related to endangering national security have been dropped. Nonetheless, this incident serves as a warning about the potential security risks of crypto prediction markets related to sensitive information leaks and trading behaviors, which may lead to further regulatory and legal scrutiny.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Encouraging innovation! U.S. judges ban Arizona from regulating prediction markets, and pause the prosecution against Kalshi
A U.S. federal district court ruled that Arizona cannot use its gambling laws to prosecute the prediction market platform Kalshi, finding that the U.S. Commodity Futures Trading Commission has exclusive jurisdiction. The ruling affects the boundary between state and federal authority in financial market regulation, and Kalshi insists that its business is financial products rather than traditional gambling. Rulings on prediction markets vary across states, and the Trump family has also expressed support for prediction markets.
CryptoCity38m ago
Encouraging innovation! A U.S. judge bars Arizona from regulating a prediction market and suspends the prosecution of Kalshi
A U.S. federal district court ruled that Arizona is prohibited from relying on its gambling laws to prosecute prediction market platform Kalshi, finding that the federal Commodity Futures Trading Commission has exclusive jurisdiction. The ruling affects the boundary between state and federal authority in financial market regulation, while Kalshi insists that its business falls under financial products rather than traditional gambling. Rulings on prediction markets vary from state to state, and the Trump family has also expressed support for prediction markets.
CryptoCity3h ago
Encouraging innovation! A U.S. judge bans Arizona’s regulators from prediction markets and suspends the prosecution of Kalshi
A U.S. federal district court has ruled that Arizona is barred from using its gambling law to sue the prediction market platform Kalshi, finding that the Federal Commodity Futures Trading Commission has exclusive jurisdiction. The ruling affects the boundary between state and federal authority in financial market regulation, and Kalshi maintains that its business falls under financial products rather than traditional gambling. Courts in different states have issued differing rulings on prediction markets, and the Trump family has also expressed support for prediction markets.
CryptoCity6h ago
Polymarket Trader Turns $500 Into $252K After UFC Makes Yet Another Scoring Error
In brief
A Polymarket trader walked away with $252,000 in profit after the UFC incorrectly identified a fight’s winner for the second time in two weeks.
An X account linked to the Polymarket trader said that they had noticed the error by looking at the bout’s official scorecard.
The
Decrypt7h ago
Polymarket reviews and weeds out early-stage projects in its ecosystem, targeting insider trading and market manipulation behaviors
Polymarket announced an audit of some of the onboarded startup projects that have been accused of using allegedly insider trading account information to steer users into making trades. The move is intended to strengthen compliance management and address external concerns about the risks of insider trading.
GateNews7h ago
Encourage innovation! A U.S. judge bans Arizona-regulated prediction markets and suspends prosecution against Kalshi.
A U.S. federal district court has ruled that Arizona is barred from using the gambling law to prosecute the prediction market platform Kalshi, finding that the federal Commodity Futures Trading Commission has exclusive jurisdiction. The ruling affects the line between state and federal authority over financial market regulation, while Kalshi maintains that its business is a financial product rather than traditional gambling. Decisions on prediction markets vary from state to state, and the Trump family has also expressed support for prediction markets.
CryptoCity9h ago
