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The U.S. Department of Defense has banned U.S. service members and Defense Department employees from trading on prediction markets using nonpublic information, according to NewsBitcoin.
Defense Secretary Pete Hegseth warned military-operation prediction trading exposes sensitive information to adversaries and could put troops at risk. The ban covers both classified and unclassified information and specifically names prediction market platforms Polymarket and Kalshi, along with existing betting services and other financial platforms.
Violations could lead to administrative penalties, disciplinary proceedings or criminal prosecution under military regulations and related federal law. The guidance comes months after a soldier was indicted earlier this year for making $400,000 on Polymarket using nonpublic information.