Google Engineer Accused of $1.2 Million Insider Trading Scheme on Polymarket Using Confidential Search Data

By [Author Name] | July 26, 2024

Federal prosecutors have charged a Google employee with fraud, alleging that he leveraged confidential, non-public information to make approximately $1.2 million in illicit profits through bets placed on the prediction market platform Polymarket. The employee, identified as Michele Spagnuolo, a staff information security engineer at Google, faces charges including money laundering, commodities fraud, and wire fraud, according to a complaint unsealed in the Southern District of New York.

Prosecutors claim Spagnuolo exploited his access to Google's internal data systems, specifically a tool that provided him with confidential "Year in Search" data. This non-public information allowed him to make highly accurate bets, including one predicting that the singer d4vd would be Google's most searched individual in 2025. The complaint notes that observers on Polymarket had previously flagged the user "AlphaRaccoon"—identified as Spagnuolo—for suspicious activity on search term contracts.

The complaint details that Spagnuolo's account profited around $1.2 million shortly after Google officially announced its Year in Search 2025 results on or about December 4, 2025. Spagnuolo was arrested in New York and later appeared before a federal magistrate judge. He was released on a $2.25 million bond, without entering a plea.

Google acknowledged the situation, stating, "We're working with law enforcement on their investigation." The company confirmed that Spagnuolo accessed marketing material using a tool available to all employees but emphasized that using such confidential information for betting is a "serious breach of our policies." Google has placed the employee on leave and stated that appropriate action will be taken.

Polymarket issued a statement, noting its close cooperation with the U.S. Attorney's Office for the Southern District of New York and the CFTC. The platform highlighted its role in leading to insider trading charges in the United States and reiterated its commitment to fair and transparent markets.

In addition to the criminal charges, Spagnuolo is also facing a civil lawsuit from the Commodity Futures Trading Commission (CFTC) for insider trading. The CFTC complaint alleges that Spagnuolo misappropriated confidential information to trade on various search market contracts, including those related to "Will Zohran Mamdani rank in the Top 5 most searched" and "Will Squid Game be the #1 searched TV show."

This case marks the second significant insider trading accusation involving Polymarket within a short period. In April, U.S. Army Special Forces master sergeant Gannon Ken Van Dyke was arrested for allegedly using classified information to bet on contracts related to the U.S. operation to capture Venezuelan President Nicolás Maduro, reportedly profiting over $400,000.