Investigators say the reservists accessed classified information as part of their service and allegedly used it to place bets on future military operations.
Israeli authorities have charged an Israel Defense Forces (IDF) reservist and a civilian for allegedly using classified military information to place bets on the popular prediction market platform Polymarket.
According to the Times of Israel, Israeli authorities have charged an IDF reservist and a civilian suspected of exploiting classified military information to place bets on the Polymarket prediction market platform.
Use of classified information
The indictments follow a joint investigation by the Defense Ministry, Shin Bet and Israeli police, which led to the arrest of several suspects, including other reservists. Investigators say reservists used sensitive information they were exposed to during their military duties to make bets related to future military developments.
Prosecutors filed charges against a reservist and a civilian for what authorities said were serious security violations, as well as corruption and obstruction of justice. A court-ordered silence order is currently in effect, preventing the release of further details about the investigation, including operational details and all of those interviewed.
In a joint statement, the defense establishment warned that placing bets based on classified information creates a real and serious threat to IDF operations and state security. The agencies added that such conduct is treated with the utmost severity and that authorities will act decisively against anyone involved in the illegal use of secret documents.
The case comes a month after the Shin Bet investigated suspicions that someone within the defense establishment used classified information to bet on Polymarket. This report drew attention to a Polymarket account operating under the name “ricosuave666,” which had placed several highly specific bets in June 2025 related to Israeli military operations in Iran.
According to the report, the user bet tens of thousands of dollars and made an estimated profit of around $150,000.
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Market manipulation issues
Polymarket’s growing popularity has attracted both casual traders and high-profile participants. Among them is Vitalik Buterin, who recently revealed that he made around $70,000 last year on the platform by betting against outcomes he considers highly irrational. Polymarket also ran lighter but widely shared bets, such as comparisons showing the odds of confirming extraterrestrial life in 2025 were higher than Bitcoin reaching $200,000, especially during times of extreme market stress.
Although the platform has seen rapid growth and occasional large payouts, it has also faced scrutiny due to concerns over manipulation and potential misuse of inside information.
According to a recent study by researchers at Columbia University, trading patterns on Polymarket, indicative of wash trading, began to increase in July 2024 and peaked at nearly 60% of reported volume in December of that year. The researchers found that activity continued until the end of April 2025, then increased to around 20% of volume in early October 2025.
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