US Secretary of War Pete Hegseth issued a memorandum prohibiting department personnel from using nonpublic information for financial transactions. The ban specifically covers wagers on military outcomes placed on platforms like Polymarket and Kalshi.
The directive applies to both classified and unclassified information, regardless of whether the trades are made personally or through third parties. Violations may result in administrative, disciplinary, or criminal penalties under military and federal law.
The Pentagon stated that such trading creates national security risks by potentially exposing details about military operations, targets, and troop movements to foreign intelligence services. Financial interests may also conflict with professional duties.
The policy follows a case involving US Army soldier Gannon Ken Van Dyke. In April 2026, prosecutors charged him with using classified information from Operation Absolute Resolve to place 13 bets on Polymarket.
Van Dyke allegedly wagered $33 034 on outcomes related to the capture of Venezuelan President Nicolás Maduro. Prosecutors claim these bets generated a profit of approximately $409 881.
