Israelis Arrested for Betting With Classified Military Intelligence

Two Israelis have been arrested on suspicion of exploiting top-secret military information to place online bets triggering alarm across Israel’s defense establishment and raising sharp questions about ethics, security, and the misuse of sensitive intelligence.

According to authorities, the suspects one an active IDF reservist and the other a civilian are accused of wagering on the occurrence of military operations using classified information accessed through military channels. The betting allegedly took place on Polymarket, a U.S.-based online prediction platform where users trade on real-world events using cryptocurrency.

The arrests followed a joint investigation conducted by the Shin Bet, Israel Police, the Defense Ministry, and the State Attorney’s Office. While many details remain under a court-imposed gag order, the attorney general’s office has already approved filing serious charges, including bribery and obstruction of justice.

Israel’s security services stressed that the issue goes far beyond gambling.

“The defense establishment emphasizes that, in carrying out such bets relying on secret and classified information, there is a real security risk to IDF activities and state security,” the Shin Bet said in a statement.

The IDF echoed that assessment, calling the alleged actions a fundamental breach of trust. “Any act that endangers the security of the state especially the use of highly classified information for personal gain is viewed with the utmost severity,” the military said. “This is a serious ethical lapse and a clear red line crossing, entirely inconsistent with the values of the IDF and the expectations of its service members.”

At the same time, the IDF clarified that investigators found no evidence of direct operational damage resulting from the alleged betting activity. Still, officials emphasized that the potential risk itself was unacceptable.

The case highlights a new and unsettling vulnerability in the digital age, where prediction markets and real-time global speculation intersect with national security. Betting platforms like Polymarket thrive on information asymmetry making any misuse of privileged intelligence not just unethical, but potentially dangerous.

For Israel, a country that depends on strict information discipline to protect lives, the incident is a stark reminder that safeguarding national security is not only about external threats, but about maintaining integrity and responsibility within.

The investigation remains ongoing, and further details are expected to emerge as legal proceedings advance.

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