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
ProCap Financial Partners with Kalshi to Launch AI-Powered Prediction Market Research Service
Gate News message, April 21 — ProCap Financial, founded by crypto entrepreneur Anthony Pompliano, has partnered with Kalshi, a prediction market operator, to launch a research service focused on prediction market analysis. The service leverages Kalshi's data pipeline and ProCap's AI agents to
GateNews1h ago
Kalshi Faces Supreme Court Battle as Inflation Volatility Fuels Prediction Market Hedging Demand
Kalshi and Polymarket face a potential Supreme Court showdown over the legality of prediction markets as inflation rises and stock markets hit record highs. The outcome may redefine how traders hedge economic risks amid conflicting court rulings on their operations.
GateNews17h ago
Polymarket Seeks $400M in New Funding at $15 Billion Valuation
Polymarket is seeking an additional $400 million in funding after raising $600 million at a $15 billion valuation, which has increased from $9 billion last year. Despite this growth, it still lags behind competitor Kalshi Inc.'s $22 billion valuation.
GateNews18h ago
Kevin Warsh 成首位「Tech Bro」Fed 主席提名人：AI 樂觀派、持 SpaceX 與 Polymarket 股份
Kevin Warsh, nominated by Trump, becomes the first “Tech Bro” Fed chair, closely connected with Silicon Valley giants, and argues that AI can reduce inflation and supports an accommodative monetary policy. His Silicon Valley background could influence the Fed’s interest-rate decisions; expectations for the crypto market are positive, but the risk of conflicts of interest also needs to be considered. His appointment process and future policy direction will affect the U.S. Dollar Index and valuations of Taiwan stocks.
ChainNewsAbmedia22h ago
Major CEX Launches Event Contracts For Short-Term BTC And ETH Price Trading
A global exchange has launched Event Contracts, allowing users to bet on Bitcoin and Ethereum price movements over set timeframes. This simplified trading option features low costs and automatic settlement, aimed at easing short-term investment strategies.
GateNews04-20 11:02
Polymarket Raises $400M at $15B Valuation With Intercontinental Exchange Support
Polymarket is seeking to raise $400 million at a $15 billion valuation, adding to a $600 million investment from Intercontinental Exchange. This funding aims to enhance infrastructure and liquidity for its event-based trading platform, amid ongoing debates over its valuation and market potential.
GateNews04-20 06:51
