Pentagon Memo Cites $8 Million in Suspicious Military Bets

A combined $8 million in winnings from suspicious trading accounts has prompted the Pentagon to ban Defense Department personnel from betting on military outcomes. The new directive aims to stop the use of nonpublic information for personal financial gain.

The memo, dated October 20, warns that financial transactions tied to defense results create detectable signals. Hegseth stated that hostile foreign intelligence services can aggregate and correlate these signals. This allows adversaries to anticipate American movements, targets, and timing before they occur.

The prohibition covers all financial platforms, including traditional betting services and prediction markets like Polymarket and Kalshi. Department personnel are barred from making any financial transaction informed by nonpublic information. This ban applies regardless of whether the information is classified or unclassified.

The order follows a specific criminal case that occurred in April. A US Army soldier was arrested and charged with using confidential data to place bets on Polymarket. The soldier wagered on the timing of the military capture of Venezuelan President Nicolás Maduro. His trades resulted in a profit of $410,000.

Concerns about the practice extend beyond that single arrest. An August report from the Anti-Corruption Data Collective identified 152 suspicious wallets. These accounts placed longshot bets on military and defense markets. The group found that these wallets collectively won $8 million.

Hegseth argued that personal financial stakes can compromise operational judgment. The memo states that service members deserve a force that protects them from exposure. The directive was sent to senior Pentagon leaders, Combatant Command heads, and directors of Defense Department field activities.