Google engineer charged with insider trading after making $1.2M on Polymarket

The U.S. Department of Justice has leveled serious allegations against Michele Spagnuolo, a software engineer at Google, accusing him of insider trading that resulted in a staggering $1.2 million profit on the prediction market platform Polymarket. Spagnuolo, who operated under the pseudonym 'AlphaRaccoon,' has been with Google for over 12 years, as per his LinkedIn profile. According to Jay Clayton, the United States Attorney for the Southern District of New York, Spagnuolo's actions constituted a violation of his obligations to Google. 'As alleged, Spagnuolo exploited confidential business information to secure over $1.2 million in trading gains on Polymarket,' he stated in a press release. 'Insider trading undermines market integrity and the public expects these greedy actions to be thoroughly investigated and prosecuted.' Platforms like Polymarket and Kalshi enable users to wager on various outcomes, but insider trading is strictly prohibited due to its illegal nature, although some individuals still engage in such practices. Notably, a recent case involved a U.S. Army soldier who allegedly used classified knowledge of a military operation to earn $400,000 on Polymarket. The complaint against Spagnuolo highlights that he risked more than $2.7 million on bets tied to Google’s marketing initiative for the 2025 Year in Search, where the company discloses the year's most popular search queries. It is alleged that he accessed internal Google Search data regarding trending celebrities to inform his betting decisions. In response to the charges, a spokesperson for Polymarket emphasized the platform's collaboration with the U.S. Attorney’s Office and the Commodity Futures Trading Commission (CFTC), noting that it is the only prediction market whose cooperation has led to insider trading charges in the U.S. They remarked, 'Blockchain trading is transparent and traceable, ensuring that bad actors leave a digital footprint. We are dedicated to upholding fair and transparent markets while enforcing our rules and collaborating with regulators and law enforcement.' Meanwhile, Google confirmed that it is cooperating with law enforcement in their ongoing investigation. A Google representative stated, 'The employee accessed our marketing materials through tools available to all staff, but using such confidential information for personal betting constitutes a significant breach of our policies.' The company has placed Spagnuolo on leave and plans to take appropriate action.