Hegseth bans use of nonpublic info for bets on U.S. military ops

Defense Secretary Pete Hegseth has issued a ban prohibiting Defense Department personnel from using nonpublic information for betting on U.S. military operations, according to a memo obtained by CBS News. The directive, issued on October 20, applies to both classified and unclassified information and specifically targets prediction markets like Polymarket and Kalshi.

Hegseth warned that engaging in financial transactions on these markets could expose sensitive military movements to foreign adversaries, thus endangering American troops. He stressed that our enemies monitor these markets, and when a service member, intelligence professional, or civilian engages in a financial transaction related to a military outcome, they inadvertently create a signal that could be analyzed by foreign intelligence services.

Such analysis could enable them to anticipate American military movements, targets, and the timing of operations. Hegseth emphasized that violations of this prohibition could result in administrative disciplinary actions or criminal charges under federal law or the Uniform Code of Military Justice. The directive comes in response to increasing concerns about service members participating in military-related prediction markets.

In April, a U.S. Special Forces soldier involved in the operation that captured Venezuelan leader Nicolas Maduro was arrested for allegedly betting on Maduro's removal from office on a prediction market. Federal investigators suspect that the soldier, Master Sgt. Gannon Ken Van Dyke, made bets worth over $33,000 on Polymarket within hours of President Trump's announcement about Maduro's capture, resulting in winnings of more than $409,000. Van Dyke entered a not guilty plea in a New York federal court.