U.S. diplomats are warned: Do not use confidential information to place bets on prediction websites

Odaily Planet Daily reports that according to an internal memo from the U.S. State Department seen by The Wall Street Journal, U.S. diplomats have been warned not to use confidential information to place bets on prediction websites. As betting funds related to U.S.-Iran negotiations flood in, the memo reminds all staff that abusing non-public information for financial gain is a serious violation and is strictly prohibited. One week before this warning was issued, a U.S. military special forces soldier pleaded not guilty to charges of using classified information to bet on Polymarket about the ousting of Venezuela’s former president, profiting over $400k. Officials stated that the rapid rise of online prediction markets has become a significant potential national security issue for the United States. Last month, just hours before Trump announced a ceasefire agreement with Iran, multiple accounts on Polymarket placed precise and well-timed bets, earning tens of thousands to hundreds of thousands of dollars.