[U.S. Diplomats Warned: Do Not Use Classified Information to Bet on Prediction Markets] Odaily Planet Daily reports that, according to an internal U.S. State Department memo seen by *The Wall Street Journal*, U.S. diplomats have been warned not to use classified information to place bets on prediction markets. As funds related to U.S.-Iran negotiations pour into these markets, the memo reminds all employees that abusing non-public information for financial gain is a serious violation and will not be tolerated. The warning comes a week after a U.S. Special Forces soldier pleaded not guilty to charges of using classified information to bet on Polymarket regarding the removal of Venezuela's former president, reportedly earning over $400,000. Officials have stated that the rapid rise of online prediction markets has become a significant potential national security issue for the U.S. Last month, just hours before former President Trump announced a ceasefire agreement with Iran, several accounts on Polymarket made precise and well-timed bets, earning profits ranging from tens of thousands to hundreds of thousands of dollars.