Israeli Reservist and Civilian Indicted for Alleged Insider Betting on Polymarket

An Israel Defense Forces reservist and a civilian have been formally indicted in Tel Aviv for allegedly using classified military information to place wagers on the blockchain based prediction platform Polymarket. Prosecutors say the reservist accessed sensitive operational intelligence through his military role and shared it with the civilian, who then used that information to make bets linked to military actions.

The Tel Aviv District Court lifted a gag order at the request of the State Attorney’s Office cyber division, allowing publication of the indictment. Authorities described a joint operation involving the Shin Bet internal security service, the Defense Ministry Malmab security investigations unit, and Israel Police that led to the arrests.

Prosecutors have charged the two with serious security offenses, bribery, and obstruction of justice, underscoring concerns about using inside knowledge for financial gain on unregulated prediction markets. Officials emphasized that neither defendant holds senior positions within the defense establishment.

Broader Context of Prediction Market Abuse

The case follows earlier reports that Israeli authorities were investigating unusually precise bets on Polymarket tied to military operations, including outcomes related to actions against Iran. Experts have warned that online prediction markets can be vulnerable to abuse when participants use non‑public information to influence contract outcomes.

Disclaimer

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