Key facts
- Pentagon staff are prohibited from engaging in financial transactions using nonpublic information.
- The ban applies to both classified and unclassified information.
- The directive follows the indictment of a US Army soldier for allegedly using classified information to bet on Polymarket.
- Israeli authorities arrested and indicted a military reservist and a civilian for similar alleged offenses.
US Defense Secretary Pete Hegseth has prohibited all Pentagon staff from using nonpublic information, including classified and unclassified details, to place wagers on prediction market platforms. The directive, sent via memo on Tuesday, aims to prevent adversaries from gaining insights into military operations and to avoid conflicts of interest among personnel. Hegseth stated that "our enemies watch movements in these markets" and that financial stakes can "warp judgment." The ban follows the April indictment of US Army soldier Gannon Ken Van Dyke, who allegedly used classified information about an operation to capture Venezuelan leader Nicolás Maduro to profit over $400,000 on Polymarket. Van Dyke has pleaded not guilty. In February, Israeli authorities also arrested and indicted a military reservist and a civilian for allegedly using classified information to bet on Polymarket concerning Israeli military strikes on Iran.