Google Engineer Charged In Polymarket Insider Trading Case

A Google software engineer has been charged in New York over alleged insider trading on Polymarket. Prosecutors say Michele Spagnuolo used confidential Google information to make more than $1.2 million from prediction market bets.

Good to Know

• Michele Spagnuolo allegedly traded under the name AlphaRaccoon.
• Prosecutors say he risked more than $2.7 million on Google Year in Search markets.
• Google said the employee has been placed on leave.

Google Data Becomes A Prediction Market Case

The Justice Department says Spagnuolo used internal Google Search data to bet on markets tied to Google Year in Search 2025. The case covers bets on the most-searched people list, including wagers prosecutors say relied on non-public company information.

Jay Clayton, United States Attorney for the Southern District of New York, said:

“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.”

Polymarket said it worked with the Southern District of New York and the CFTC. A company spokesperson said:

“Blockchain trading is transparent, traceable, and bad actors leave footprints.”

Google also confirmed an internal policy breach. The company said:

“The employee accessed our marketing material using a tool available to all employees, but using such confidential information to place bets is a serious breach of our policies.”

The case adds another legal test for prediction markets, where event contracts can cover sports, politics, entertainment and business outcomes. Federal prosecutors recently brought a separate Polymarket-related case against a US Army soldier accused of using inside military information to make about $400,000.