An Israeli Air Force officer with the rank of major faces a possible breach of trust charge after allegedly using inside knowledge to trade on Polymarket contracts linked to strikes in Iran and Yemen, according to N12.
The officer has been called to a pre-indictment hearing. Prosecutors will make a final charging decision after considering his response, meaning no indictment has yet been filed in this case.
N12 did not identify the officer. Its report also did not disclose the contracts involved, the amounts traded or whether the officer made a profit.
No response from the officer or Polymarket was included. The proposed charge is limited to breach of trust, distinguishing the matter from an earlier prosecution involving classified operational information.
That separate case was initiated in February and made public in March. It involved an Air Force reserve major and a civilian.
According to details from the indictment reported by Ynet, the reservist learned the timing of an Israeli operation against Iran during a classified briefing in June 2025, then passed the information to the civilian through WhatsApp.
The civilian allegedly bought a Polymarket position on whether Israel would strike Iran before July and received $162,663 after the contract resolved.
Prosecutors also alleged that the pair shared proceeds through cryptocurrency. A later Yemen-related trade generated about $5,000 for the civilian.
The reservist was accused of passing secret information and accepting a bribe. Prosecutors also alleged obstruction of justice, while the civilian faced additional security-related counts.
During later detention proceedings, the reservist claimed Polymarket betting was widely known within the Air Force. The court called for senior officials to examine the claim, which has not been independently substantiated.
Polymarket’s current market-integrity rules prohibit trading when confidential information is held under a duty of trust. Its published examples specifically state that military personnel with advance knowledge of operations may not trade on related markets.
The Israeli cases form part of wider scrutiny over the use of restricted government information in event contracts. In April, the CFTC filed its first event-contract insider trading case against a US Army service member. It alleged that classified knowledge of an operation to capture Nicolás Maduro produced more than $404,000 in Polymarket profits.
Polymarket said it cooperated with US authorities in that investigation. Its international platform operates separately from Polymarket US, a CFTC-regulated designated contract market.
In March, Polymarket CEO Shayne Coplan addressed the ethical and insider-trading risks surrounding conflict contracts as geopolitical trading volume increased.
Polymarket’s integrity policy specifically bars military personnel with confidential operational knowledge from taking positions on contracts tied to those operations
