Crypto news, according to a report by The Wall Street Journal, an internal U.S. State Department memo shows that American diplomats have been warned not to use confidential information to place bets on prediction websites. As funds related to the U.S.-Iran negotiations pour into the market, the memo reminds all employees that abusing non-public information to seek economic benefits is a serious violation and will not be tolerated. A week before the warning was issued, a U.S. military Special Forces soldier charged with using classified information to bet on Polymarket for the ouster of Venezuela’s former president and profiting more than $400,000 pleaded not guilty. Officials said the rapid rise of online prediction markets has become a major potential national security concern for the United States. Last month, hours before Trump announced a ceasefire agreement with Iran, multiple accounts on Polymarket made precise bets at the right time, earning tens of thousands to several hundred thousand dollars in profit.