The U.S. Justice Department charged Google software engineer Michele Spagnuolo with insider trading in May 2026, alleging he used confidential company information to earn more than $1.2 million in profits on the prediction market platform Polymarket.
Spagnuolo, who went by the username “AlphaRaccoon” on Polymarket and has worked at Google for over 12 years, allegedly accessed internal Google Search data about the most-searched celebrities of the year. He then used that information to place wagers totaling more than $2.7 million on markets tied to Google’s 2025 Year in Search campaign — a marketing initiative in which Google publicly reveals the year’s most popular searches.
“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,” said Jay Clayton, the U.S. Attorney for the Southern District of New York. “Insider trading compromises the integrity of our markets, and the American people want this greed-driven conduct investigated and prosecuted.”
Google confirmed the employee accessed marketing material through an internal tool available to all staff, calling the use of that information to place bets “a serious breach of our policies.” The company said it has placed Spagnuolo on leave and is cooperating with law enforcement.
Polymarket said it worked closely with the U.S. Attorney’s Office and the CFTC on the case, describing itself as “the only prediction platform to date whose cooperation has led to insider trading charges in the United States.” The company noted that blockchain-based trading leaves traceable records, suggesting the transparent nature of the technology may have aided investigators.
The case follows a separate Justice Department charge against a U.S. Army soldier who allegedly used insider knowledge of a military operation to make $400,000 on Polymarket, indicating growing regulatory scrutiny of insider trading on prediction market platforms.
Source: TechCrunch