Hegseth warns prediction market bets warp military judgment, endanger troops
Pentagon memo: Insider trading gives US enemies key intel on military operations.
Pentagon memo: Insider trading gives US enemies key intel on military operations.
The short version
- Defense Secretary Pete Hegseth issued a memo warning military personnel against using nonpublic information to make bets on prediction markets, saying the wagers could give important clues to enemy countries.
- “Do Not Compromise Military Operations for Personal Financial Gain,” said the subject line of an October 20 memo published yesterday by CBS News .
- Hegseth’s memo was sent to senior Pentagon leadership, Combatant Command leaders, and Defense Department field activity directors.
What happened
In April, a US Army soldier was arrested and charged with using confidential information to make $410,000 in Polymarket bets on the timing of the military’s capture of Venezuelan President Nicolás Maduro. An August report by the Anti-Corruption Data Collective said the group found 152 suspicious wallets that placed longshot bets on military and defense markets and won a combined $8 million.
Why it matters
Hegseth’s memo said the prohibition applies to “all financial platforms,” including traditional betting services and prediction markets such as Polymarket and Kalshi.
Summary by Nerd News Network. Read the full article at Ars Technica via the links above and below.