Hegseth Bans Military Betting on Operations Amid Insider Trading Concerns

• •Hegseth's memo bans military personnel from betting on military operations using nonpublic information.
• •The prohibition includes both classified and unclassified information, affecting prediction markets like Polymarket.
• •Violations may result in serious disciplinary actions under military law.

Defense Secretary Pete Hegseth issued a memorandum on October 20, 2026, prohibiting Pentagon personnel from using nonpublic information to place bets on military operations. This ban includes prediction markets like Polymarket and Kalshi and applies to both classified and unclassified information. Hegseth emphasized that such betting could expose sensitive military movements to foreign adversaries, potentially endangering troops. The directive follows a case involving a soldier who allegedly profited from insider knowledge related to the capture of Venezuelan leader Nicolás Maduro. Reports indicate that over 150 wallets on Polymarket may have engaged in suspicious betting activities linked to military operations. Violations of this ban could lead to administrative or criminal actions under military law. Hegseth's memo highlights the risks of financial stakes warping military judgment and compromising operational security.