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
U.S. CFTC Issues First-Ever Predictive Market Manipulation Risk Guidance and Seeks Public Comment on Proposed Rules
The U.S. Commodity Futures Trading Commission has issued guidance on prediction market manipulation risks, requiring exchanges to consult with regulators before launching markets susceptible to manipulation. The guidance indicates that if contracts contradict public interest, they may be blocked, and sports contracts should cooperate with leagues to prevent insider trading.
GateNews2h ago
Polymarket Explores Funding Round at $20B Valuation Amid Traffic Surge
Gate News bot message, Polymarket is exploring a new funding round at approximately $20B valuation. The platform has experienced rapid growth in web traffic, reaching 38.4M monthly visits and ranking #2 among major platforms.
GateNews8h ago
Polymarket predicts a 64% probability that the Backpack token's FDV will exceed $300 million on its first day of launch
Gate News, as of March 12, according to relevant page information, Polymarket displayed on March 13 that the probability of predicting "Backpack token's FDV exceeding $300 million on the first day of listing" is 64%, while the probability of FDV being greater than $500 million is 30%. Previously, Backpack announced that it will conduct a TGE (Token Generation Event) on March 23.
GateNews9h ago
CFTC Chair: Will Issue Regulatory Guidance for Prediction Markets to Establish Clear Rules for New Types of Event Contracts
U.S. Commodity Futures Trading Commission Chairman Mike Selig announced the release of clear guidance targeting prediction markets to help trading platforms understand CFTC expectations for new contracts, ensure transparent rules, and prevent market manipulation and abusive conduct.
GateNews13h ago
US CFTC Chair: Will Issue Clear Guidance on Prediction Markets to Prevent Manipulation and Insider Trading
US CFTC Chair Mike Selig released prediction market guidance aimed at helping trading platforms understand regulatory expectations to ensure transparent rules for new contracts and prevent manipulation and abuse. Additionally, a proposed rule prenotice will be released to establish clear rules of conduct for new markets.
GateNews13h ago
Utah HB243 Bill Defines Prediction Markets as Gambling, Kalshi Files Federal Lawsuit
Utah HB243 bill classifies "proposition betting" as gambling and is expected to be signed by the governor, which will ban platforms like Kalshi from operating. Kalshi has filed a federal lawsuit, arguing that its contracts are derivatives. The CFTC chairman stated that the agency will defend its regulatory authority.
GateNews15h ago
