Google engineer charged with insider trading over $1.2m Polymarket profits

The U.S. Justice Department has charged Google software engineer Michele Spagnuolo with insider trading, commodities fraud, wire fraud, and money laundering, alleging he exploited confidential internal data to secure approximately $1.2 million in profits on the prediction market platform Polymarket. Spagnuolo, a 36-year-old based in Zurich who has worked at Google for over 12 years, is accused of placing wagers totalling more than $2.7 million between October and December 2025.

According to the unsealed complaint, Spagnuolo used his access to confidential internal Google Search data regarding the company’s 2025 'Year in Search' campaign to inform his bets. The data included commercially valuable information on the world’s most popular searches, specifically regarding celebrities, before it was made public. He operated on Polymarket under the username “AlphaRaccoon”.

Jay Clayton, the United States Attorney for the Southern District of New York, condemned the conduct as “greed-driven” in a press release. “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,” Clayton said. “Insider trading compromises the integrity of our markets, and the American people want this greed-driven conduct investigated and prosecuted.”

Polymarket confirmed it cooperated closely with the U.S. Attorney’s Office and the Commodity Futures Trading Commission. A spokesperson for the platform stated it is the only prediction platform to date whose cooperation has led to insider trading charges in the United States, emphasising that blockchain trading is transparent and traceable. The company added it is committed to maintaining fair markets and working with regulators.

Google has placed Spagnuolo on leave pending the outcome of the investigation. A company spokesperson told TechCrunch that while the employee accessed marketing material using a tool available to all staff, using such confidential information to place bets constitutes a serious breach of policy. The company confirmed it is working with law enforcement and will take appropriate action.

This case follows a recent precedent where a U.S. Army soldier was charged for allegedly using insider knowledge of a military operation to make $400,000 on Polymarket. Prediction markets such as Polymarket and Kalshi allow users to bet on various outcomes, but insider trading remains illegal on these platforms. Spagnuolo was arrested in New York on the federal charges.