Civilian and Reservist Indicted for Using Classified Information to Bet on Iran Strikes

An Israeli reservist and a civilian have been indicted for allegedly using classified military information to place online bets on upcoming IDF operations connected to Iran. The indictment was filed Thursday by the Cyber Department of the State Attorney’s Office following a joint investigation by the Shin Bet, Malmab in the Defense Ministry, and Israel Police.

According to the indictment, the reservist was exposed in the course of his military role to classified information concerning operational IDF activity. Prosecutors allege that he and the civilian used that information to place wagers on the international betting platform Polymarket, converting sensitive operational knowledge into financial profit. The charges include serious security offenses as well as bribery and obstruction of justice.

At the center of the case are bets placed in June 2025 surrounding Operation Am Kelavi. According to a report, an anonymous Polymarket user wagered tens of thousands of dollars on four predictions: that Israel would strike Iran on a Friday; that Israel would strike Iran before the end of June 2025; that Israel would announce the end of the operation by July; and that Israel would strike before July. The predictions ultimately materialized.

Polymarket allows users worldwide to register without using their real names and to fund accounts using digital currencies, enabling anonymous participation in speculative markets tied to geopolitical developments.

Security officials warned that such activity poses a direct threat to national security. “In placing such bets based on secret and classified information, there is a real security risk to IDF operations and to the security of the state,” the defense establishment said in a joint statement.

The IDF condemned the conduct in sharp terms. “This is a grave ethical failure and a clear crossing of a red line, which are not consistent with IDF values or what is expected of its servicemembers,” the military said. It added, “We clarify that according to the findings of the investigation, no operational harm was caused in the current incident.” The IDF said procedures will be tightened across units and that criminal and command-level steps will be taken against anyone found involved.

Authorities stressed that only limited details are permitted for publication under court order. “The detailed information contained in this announcement alone is permitted for publication by court order. The remaining details of the investigation and the identities of those involved remain under a gag order,” the statement said.

Attorneys for the reservist rejected the severity of the charges. “Our client is a highly decorated individual who made a significant contribution to the security of the state,” they said. The lawyers emphasized that prosecutors ultimately did not attribute intent to harm state security, stating that the indictment accuses their client of delivering secret information “without authorization” but not of a severe security offense or malicious motive. They also alleged selective enforcement and investigative misconduct and said they are confident the case will conclude differently.

A similar but unrelated Polymarket episode recently drew scrutiny in the United States, after an anonymous user reportedly profited heavily by betting on the removal of Venezuelan President Nicolás Maduro shortly before a covert American action in Caracas. The spike in odds hours before the operation raised questions there about possible use of inside information.

In Israel, security agencies emphasized that the misuse of classified information for personal financial gain will be prosecuted firmly. Investigators say the case highlights the risks posed by digital prediction markets when combined with access to sensitive state secrets.