Israel indicts IDF reservist for using classified military data on Polymarket

Israeli authorities have indicted an Israel Defense Forces (IDF) reservist and a civilian for allegedly using classified military information to place wagers on the decentralized prediction market Polymarket.

The case has raised concerns over the misuse of sensitive data and the integrity of online betting platforms.

Polymarket under scrutiny as IDF reservist charged in insider betting case

According to multiple Israeli media reports, the Tel Aviv District Court on Thursday approved the publication of an indictment against the two defendants, who are accused of accessing internal military intelligence through the reservist’s army role and using it to inform bets on potential military operations.

The indictment, filed at the request of the State Attorney’s Office cyber division, alleges that the reservist shared operational information with the civilian, enabling them to place wagers on Polymarket tied to Israeli military actions.

Police and security services, including the Shin Bet internal security agency and the Arazim investigations unit of the Defense Ministry, conducted the joint investigation that led to the indictment.

Prosecutors have charged the pair with serious security-related offenses, bribery, and obstruction of justice. Authorities emphasized that neither defendant holds a senior position in the defense establishment.

For context, Polymarket is a blockchain-based platform that allows users to buy and sell “yes” or “no” outcome contracts on real-world events. Unlike traditional betting sites, Polymarket operates pseudonymously through crypto wallets, making participation difficult to trace to individual identities.

The case emerged amid scrutiny of unusually accurate wagers placed on military outcomes, including bets tied to Israeli operations in Iran during June 2025.

Local media reported that one anonymous Polymarket account made several highly precise predictions about strikes and their timing, leading to significant profits — an anomaly that helped spark the investigation.

Israeli authorities have stressed that placing bets based on classified information poses a security risk to IDF operations and national defense, and that exploiting secret material for financial gain could undermine operational secrecy.