Hegseth warns prediction market bets could distort military judgment and endanger troops

Defense Secretary Pete Hegseth has raised concerns that betting on prediction markets by people with access to military information poses risks to national security. According to a Pentagon memo, insider trading could give US adversaries valuable intelligence about military operations. The memo argues that such wagering can also warp the judgment of personnel involved in decision-making. Hegseth's warning frames these financial activities as a direct threat to the safety of American troops. The article is sourced from Ars Technica's reporting on the Pentagon memo.