US Pentagon Bans Personnel from Betting on Military Operations Using Insider Info

In a memo distributed to senior officials within the Pentagon and other defense agencies on Tuesday, Hegseth emphasized that all Department of Defense personnel are forbidden from engaging in financial transactions based on nonpublic data, whether classified or unclassified.

He stressed the critical importance of this rule by noting that adversaries monitor these markets closely. Hegseth pointed out, “The lives of our service members often rely on the enemy remaining unaware of forthcoming operations.”

He further explained that aside from protecting operational security, betting on outcomes can compromise impartial judgment, as those with financial stakes in certain strike dates or results may be biased, such as logisticians or analysts.

This directive was prompted by the April indictment of US Army soldier Gannon Ken Van Dyke, who allegedly exploited classified knowledge about an operation to detain Venezuelan leader Nicolás Maduro to generate over $400,000 through bets on Polymarket.

Authorities claim Van Dyke was involved in the planning and execution of the mission and then used that privileged information to bet on various outcomes related to Maduro’s capture. He has pleaded not guilty to all charges.

Earlier in February, Israeli officials arrested and charged a military reservist alongside a civilian for allegedly leveraging classified intelligence to place bets on Polymarket concerning Israeli military strikes on Iran.

Beyond addressing insider trading risks, the Pentagon’s order highlights how such betting activities can jeopardize national security and the impartiality of personnel involved in military operations.