TLDR
- A Google information security engineer was charged over alleged insider trading linked to Polymarket bets.
- Prosecutors said Michele Spagnuolo used confidential Google search data to earn about $1.2 million.
- The complaint said Spagnuolo placed bets on Google’s 2025 Year in Search results before publication.
- Federal prosecutors charged him with commodities fraud, wire fraud, and money laundering.
- Reuters reported that the case appears to be the first U.S. insider trading case tied to Polymarket.
A Google information security engineer has been charged over alleged insider trading tied to Polymarket bets.
The U.S. Attorney’s Office for the Southern District of New York said Michele Spagnuolo misused confidential Google data. Prosecutors said the 36-year-old employee used the information to make more than $1.2 million.
According to the criminal complaint unsealed on May 27, Spagnuolo traded under the Polymarket username “AlphaRaccoon.” The complaint said he placed bets on Google’s 2025 Year in Search rankings before the company released them.
Spagnuolo appeared in federal court in Manhattan on Wednesday. Court records cited by prosecutors said he was released on a $2.25 million bond.
Prosecutors Detail Google Data Allegations
According to prosecutors, Spagnuolo had access to internal search trend data through his Google role. The complaint said the data was private and limited to certain employees.
Google publishes its Year in Search report every December. The list ranks people, topics, and events based on search activity during the year.
Federal prosecutors said Spagnuolo used non-public data between October and December 2025. During that period, he allegedly placed several Polymarket bets linked to Google search rankings.
The complaint said one key wager involved singer D4vd. Prosecutors said Spagnuolo bet that D4vd would rank as Google’s top-searched person for 2025.
Google released the 2025 Year in Search results on December 4. Prosecutors said the result matched Spagnuolo’s bet.
Polymarket Trades Draw Federal Charges
The Justice Department charged Spagnuolo with commodities fraud, wire fraud, and money laundering. Prosecutors said the charges covered the trading activity and the handling of proceeds.
According to the SDNY complaint, Spagnuolo allegedly knew outcomes before other traders did. Prosecutors said he gained that advantage through Google’s confidential business information.
Reuters reported that the case appears to be the first U.S. insider trading case tied to Polymarket. The platform lets users trade contracts linked to future events.
Polymarket operates on blockchain technology and became more visible during the 2024 U.S. presidential election. Media outlets often cited its election-related odds during that period.
Google and Polymarket Respond to Case
Reuters reported that Google placed Spagnuolo on leave after the allegations became public. A Google spokesperson told Reuters the company cooperated with law enforcement.
Polymarket also cooperated with investigators, according to Reuters. The report said the company’s role came as federal agencies increased attention on prediction market activity.
The complaint said Spagnuolo tried to hide the source of the money after the trades. Prosecutors used that claim to support the money laundering charge.
U.S. Attorney Jay Clayton’s office said the case involves market integrity. Prosecutors said the same rules apply when trading happens through new platforms.
The CFTC previously settled with Polymarket in 2022 over event-based contracts. Federal and state officials have since debated how prediction markets should be regulated.
According to prosecutors, Spagnuolo’s alleged conduct gave him an unfair edge over other Polymarket users. The complaint said those users lacked access to Google’s internal search data.
