US Defense Secretary Warns Pentagon Staff Against Insider Trading

The US Defense Secretary has issued an unusual warning aimed at military personnel and Department of Defense employees. Namely, Pete Hegseth has urged against the use of confidential information for trading on prediction markets, saying these types of activities could expose sensitive military plans to foreign adversaries. In a letter dated October 20, Hegseth reminded department personnel that they are not allowed to conduct any financial transactions based on nonpublic information. This includes both trading directly and through another person. The restriction covers financial exchanges, prediction markets and sports betting platforms.