Google Engineer Charged With Insider Trading on Polymarket

The U.S. Justice Department has charged Google software engineer Michele Spagnuolo with insider trading, alleging he used confidential company data to secure $1.2 million in profits on the prediction platform Polymarket [1]. Spagnuolo, an Italian citizen residing in Switzerland, was arrested and appeared before a federal judge in New York to face charges including wire fraud, commodities fraud, and money laundering [2].

Key takeaways

• Michele Spagnuolo allegedly used the username “AlphaRaccoon” to place wagers on Polymarket based on nonpublic Google search data [1, 2].
• The engineer reportedly risked over $2.7 million on bets related to Google’s 2025 "Year in Search" marketing campaign [1, 2].
• Spagnuolo had worked at Google for more than 12 years prior to the charges [1].
• Google has placed the employee on leave and is cooperating with the ongoing federal investigation [1, 2].

Misusing internal search data

According to the criminal complaint, Spagnuolo utilized his access to internal Google systems to gain an unfair advantage in prediction markets [2]. Specifically, he used a software tool available to employees to access confidential, nonpublic data regarding the most-searched celebrities for Google’s 2025 "Year in Search" campaign [1, 2]. By knowing the results of these searches before they were made public in early December, Spagnuolo was able to place highly profitable bets that other market participants could not have anticipated [2].

While the $1.2 million profit was linked to the Year in Search wagers, the FBI noted that Spagnuolo also generated more than $1 million in additional profits from other, unspecified bets on the platform [2]. A spokesperson for Polymarket stated that the company worked closely with the U.S. Attorney’s Office and the CFTC, noting that the transparent nature of blockchain trading allowed law enforcement to track the activity [1].

Why it matters

The case highlights the growing scrutiny of insider trading within decentralized prediction markets. U.S. Attorney Jay Clayton emphasized that such conduct compromises the integrity of financial markets and remains a priority for prosecution [1]. While Google confirmed that the tool used to access the data was available to all employees, the company characterized the use of that information for personal betting as a serious violation of its internal policies [1]. As the legal process moves forward, the case serves as a reminder that prediction platforms are increasingly subject to the same regulatory oversight as traditional financial exchanges, with companies and law enforcement working together to identify and prosecute bad actors [1].