TechFlow News, May 7: According to data from JIN10, a U.S. State Department internal memo seen by The Wall Street Journal warns U.S. diplomats not to place bets on prediction markets using classified information. As betting funds related to U.S.-Iran negotiations surge, the memo reminds all employees that exploiting non-public information for economic gain constitutes a serious violation—and is absolutely intolerable.
The warning comes one week after a U.S. Army Special Forces soldier pleaded not guilty to charges of using classified information to bet on Polymarket regarding the removal of Venezuela’s former president—and earning over $400,000. Officials say the rapid rise of online prediction markets has become a major potential national security concern for the United States. Last month, several accounts on Polymarket placed highly precise and well-timed bets hours before Trump announced a ceasefire agreement with Iran—netting profits ranging from tens of thousands to hundreds of thousands of dollars.
