- U.S. prosecutors charged a Google engineer with using internal search data to profit on Polymarket.
- Authorities say the trader made roughly $1.2 million betting on Google search-related prediction markets.
- The case marks one of the biggest insider trading prosecutions tied to prediction markets so far.
A Google software engineer has been charged by U.S. authorities for allegedly using confidential internal company data to place profitable bets on Polymarket, earning approximately $1.2 million through insider trading.
Federal prosecutors unsealed a criminal complaint Wednesday accusing Michele Spagnuolo, a Google employee based in Switzerland, of commodities fraud, wire fraud, and money laundering tied to trades made on the prediction market platform.
At the same time, the Commodity Futures Trading Commission filed a parallel civil complaint alleging violations of insider trading rules under the Commodity Exchange Act.
According to the filings, Spagnuolo allegedly used access to confidential Google search trend data to trade on Polymarket contracts connected to the company’s “2025 Year in Search List.” Between October and December 2025, prosecutors say he used an account called “AlphaRaccoon” to place bets across at least 23 related prediction markets.
The contracts included wagers on categories such as the “#1 Searched Person on Google this year” and “Top 5 Most Searched People on Google 2025.”
Authorities allege Spagnuolo exploited non-public company information to consistently position himself ahead of market outcomes, generating roughly $1.2 million in profits.
“As alleged, Spagnuolo violated the duties he owed to his employer and used Google’s confidential business information to make more than $1.2 million in trading profits on Polymarket,” U.S. Attorney Jay Clayton said in a statement.
CFTC Chair Michael Selig described the case as part of the agency’s effort to protect integrity within the rapidly growing prediction market industry.
Spagnuolo, a 36-year-old Italian citizen, was arrested in New York and later released on a $2.25 million bond, according to ABC News. If convicted, he faces potential prison sentences ranging from 10 to 20 years across the various charges.
Google confirmed it has placed the employee on leave and is cooperating with investigators. The company stated that while the internal tool used by the employee was broadly accessible to staff, using confidential information for betting purposes represented a serious violation of company policy.
Polymarket also commented publicly on the case, saying its market integrity systems flagged the suspicious activity and emphasizing that blockchain-based trading leaves transparent records investigators can trace.
The prosecution follows another recent insider trading case involving Polymarket, where an active-duty U.S. soldier allegedly used confidential information tied to geopolitical events to place profitable bets.
