'Israeli' reservist indicted for betting on Iran war using classified intel

• An 'Israeli' civilian and an IOF reservist were indicted for allegedly using classified military information to place bets on Polymarket related to 'Israeli' operations, including potential strikes in Iran.
• Authorities stressed no senior officials were involved, the IOF reported no operational harm, and criminal and disciplinary proceedings are underway to prevent future misuse of sensitive information.

An 'Israeli' civilian and an Israeli Occupation Forces (IOF) reservist have been indicted for allegedly exploiting classified military information to place wagers on the online prediction platform Polymarket, the Tel Aviv District Court revealed on Thursday after partially lifting a sweeping gag order.

The indictment, filed Monday, accuses the two of using sensitive information obtained through military service to bet on the timing of 'Israeli' military operations. Authorities described the case as posing acute operational-security risks during wartime.

The court authorized publication of only a prosecution-approved paraphrase outlining the core allegations and investigative bodies involved.

Joint Security Operation and Arrests

According to the permitted statement, the suspects were arrested in a joint operation involving the Shin Bet ('Israel' Security Agency), the Defense Ministry’s security authority investigative unit (Malmab), and the 'Israel' Police.

Investigators suspected that reservists had placed wagers tied to military operations using classified information they accessed through their army roles. Following an investigation led by Malmab and the Shin Bet, prosecutors said an evidentiary foundation had been established, leading to charges described as “serious security offenses,” alongside bribery and obstruction of justice.

Prosecutors have asked the court to extend the suspects’ detention until the end of proceedings.

Further details, including identifying information, specifics of the alleged information flow, and the wagers themselves, remain under legal restriction.

No Senior Officials Implicated

Media reports emphasized that the indictment does not involve senior defense officials. The charges also do not include allegations framed as “intent to harm state security,” countering speculation that circulated publicly while the gag order was in place.

Last month, public broadcaster Kan reported that the Shin Bet was examining suspicions that classified information related to 'Israeli' military developments, including strikes in Iran, had been used on Polymarket.

Authorities have stressed that neither defendant holds a senior position within the defense establishment.

IOF: ‘Severe Ethical Failure,’ but No Operational Harm

In a statement, the IOF condemned the alleged conduct.

“The IDF views any act that endangers the security of the state gravely, and in particular the use of highly classified information for the purpose of personal gain,” the military said, describing the case as a severe ethical breach and “a clear crossing of a red line.”

The army said procedures would be tightened across units to prevent similar cases.

Spotlight on Prediction Market Vulnerabilities

The case has drawn attention to the vulnerability of prediction markets, platforms where users trade shares tied to future events, to insider information.

Polymarket has become a global hub for event-based forecasting, with unusual or high-confidence wagers often attracting scrutiny for appearing to anticipate real-world developments with striking accuracy.

The indictment comes amid broader scrutiny of whether such platforms can be exploited by individuals with access to sensitive information, particularly during periods of military conflict.