Google Engineer Charged with Insider Trading on Prediction Market
A Google software engineer faces multiple charges, including commodities fraud and money laundering, for allegedly using confidential information to gain $1.2 million through trades on Polymarket.
A former Google software engineer has been charged with leveraging confidential company data to profit from trades on the prediction market site Polymarket, culminating in a $1.2 million gain. Michele Spagnuolo, 36, based in Switzerland, was arrested on charges including commodities fraud and wire fraud, specifically accused of making risky bets on search trends informed by internal Google analytics.
Federal prosecutors allege that Spagnuolo, known by the username AlphaRaccoon, placed a series of high-stakes wagers, betting nearly $1 million that Bianca Censori would not be the most-searched person of 2025, among other similarly placed bets. Overall, he is reported to have placed $2.7 million in wagers on 25 different outcomes, resulting in significant profits from his high-risk investments.
The indictment reveals that after transferring his profits out of his cryptocurrency wallet, Spagnuolo promptly anonymized his betting account by removing the name AlphaRaccoon. In a concurrent civil suit, the Commodity Futures Trading Commission is also pursuing charges against him for violations of commodities law.
Google confirmed it has been cooperating with the federal investigation and placed Spagnuolo on leave, expressing that accessing marketing materials for betting purposes represents a serious breach of their policies. A spokesperson stated that while he utilized a tool available to all employees, using confidential information in this manner is unacceptable.
Olivia Chalos, chief legal officer at Polymarket, noted the site's collaboration with authorities regarding insider trading, emphasizing that the platform's cryptocurrency transactions allow for transparent tracking of user activities. Although prediction market regulations are less stringent than those governing stock markets, insider trading remains illegal under federal law. The case arrives as the prediction market industry continues to draw scrutiny over its operational boundaries amid ongoing disputes about regulatory oversight between state authorities and federal agencies.