The Pentagon just declared prediction markets a national-security risk.
Defense Secretary Pete Hegseth barred all Pentagon staff on Tuesday from trading on nonpublic information — classified or not — including wagers on Kalshi and Polymarket about upcoming military operations. "Our enemies watch movements in these markets," he wrote; "the lives of our service members often depend on the enemy not knowing what is coming."
The trigger: Army soldier Gannon Ken Van Dyke's April indictment for allegedly turning classified advance knowledge of the operation that captured Venezuelan leader Nicolás Maduro into over $400,000 of Polymarket bets. He has pleaded not guilty. Israel made similar arrests in February.
One caveat: the memo bans DoD insiders, not prediction markets themselves — Kalshi and Polymarket keep trading. But if the world's most informed traders are told to sit out, the order book loses its edge. Do these markets get dumber — or cleaner? NFA. DYOR.
#CryptoNews #PredictionMarkets #Polymarket #Pentagon
Defense Secretary Pete Hegseth barred all Pentagon staff on Tuesday from trading on nonpublic information — classified or not — including wagers on Kalshi and Polymarket about upcoming military operations. "Our enemies watch movements in these markets," he wrote; "the lives of our service members often depend on the enemy not knowing what is coming."
The trigger: Army soldier Gannon Ken Van Dyke's April indictment for allegedly turning classified advance knowledge of the operation that captured Venezuelan leader Nicolás Maduro into over $400,000 of Polymarket bets. He has pleaded not guilty. Israel made similar arrests in February.
One caveat: the memo bans DoD insiders, not prediction markets themselves — Kalshi and Polymarket keep trading. But if the world's most informed traders are told to sit out, the order book loses its edge. Do these markets get dumber — or cleaner? NFA. DYOR.
#CryptoNews #PredictionMarkets #Polymarket #Pentagon