The U.S. State Department warned diplomats not to use classified or other nonpublic information to place bets on prediction websites as trading activity tied to Iran talks rose on Polymarket. According to the department memo, using sensitive government information for personal profit would be treated as a serious violation. The new report also says the warning came after a U.S. special forces soldier entered a not-guilty plea in a case alleging he made more than $400,000 on a Venezuela-related Polymarket bet, adding fresh context to official concerns about prediction markets and information misuse.