Google engineer charged with $1.2m Polymarket insider trading scheme
Michele Spagnuolo faces commodities and wire fraud charges after allegedly using internal Google data to predict d4vd as top-searched person
Federal prosecutors have charged Michele Spagnuolo, a 36-year-old software engineer based in Zurich, with commodities fraud, wire fraud, and money laundering. The charges stem from allegations that Spagnuolo used confidential internal data from Google to secure approximately $1.2 million in profits on the prediction market platform Polymarket.
According to the criminal complaint, Spagnuolo allegedly exploited insider information regarding Google Search traffic between October and December 2025. He placed bets on the outcome that singer d4vd would be the top-searched person on Google in 2025, a prediction he is accused of making using non-public data.
Google has placed Spagnuolo on leave pending an investigation. A company spokesperson confirmed to ABC News that while the employee accessed marketing material via a tool available to all staff, using such confidential information for betting constituted a serious breach of policy. The company stated it is cooperating fully with law enforcement.
Polymarket confirmed that its market integrity infrastructure flagged the suspicious trading activity. The platform is cooperating with the US Attorney’s Office and the Commodity Futures Trading Commission (CFTC) as part of the ongoing investigation. The incident highlights the challenges regulators face in monitoring decentralized markets for insider trading.
This case follows a broader pattern of insider trading allegations on prediction markets, involving individuals ranging from YouTuber MrBeast’s employees to political candidates and military personnel. Although Polymarket adopted new rules in March 2025 specifically to curb such activity, the effectiveness of these policies remains to be seen as enforcement actions continue.
Spagnuolo was arrested in New York. The legal proceedings are ongoing, and the final outcome of the charges is yet to be determined. The case underscores the intersection of corporate data confidentiality and the growing regulatory scrutiny of prediction markets.
