FBI says Google engineer used internal search data to win $1.2M on Polymarket

A Google software engineer has been charged with insider trading after allegedly profiting $1.2 million through bets on Polymarket, a prediction market platform. Michele Spagnuolo, an Italian national residing in Switzerland, was arrested and appeared before a federal judge in New York on Wednesday. The U.S. Department of Justice announced that Spagnuolo is facing serious charges, including commodities fraud, wire fraud, and money laundering. These allegations stem from his purported misuse of confidential information sourced from Google to execute profitable trades related to the company’s search data. According to an unsealed criminal complaint, Spagnuolo operated under the pseudonym “AlphaRaccoon” on Polymarket, where he placed bets on which public figures would dominate Google’s search rankings in 2025. The complaint indicated that unlike other traders, Spagnuolo had prior access to the outcomes of these wagers due to his insider knowledge of Google’s confidential data. FBI Special Agent Brandon Racz noted that Spagnuolo had access to internal Google systems, including a software tool containing sensitive, nonpublic Year in Search data. Allegedly, he placed bets totaling over $2.7 million, reaping a $1.2 million profit once Google publicly released its Year in Search results for 2025 in early December. In addition to the major profits from these specific bets, Spagnuolo reportedly earned over $1 million from other trades on Polymarket, although the FBI has not disclosed the details of these additional bets. In response to the situation, Google confirmed that it has suspended the engineer and is fully cooperating with law enforcement investigations.