Google engineer charged with insider trading over $1.2m Polymarket bets

A Google software engineer has been charged by the U.S. Department of Justice over alleged insider trading tied to prediction market platform Polymarket, where he reportedly made about $1.2 million in profits using confidential company information.

The employee, identified as Michele Spagnuolo, allegedly used the alias “AlphaRaccoon” on Polymarket and worked at Google for more than a decade, according to details cited in the complaint.

Authorities said Spagnuolo accessed non-public internal Google Search data and used it to place high-value wagers linked to Google’s “Year in Search” marketing insights, which reveal trending global search activity.

How the alleged scheme unfolded

According to U.S. prosecutors, the engineer risked more than $2.7 million on prediction contracts tied to Google’s 2025 search trends, including data on the most-searched celebrities.

The Justice Department argued that this constituted misuse of confidential corporate information for personal financial gain, describing it as a breach of employee trust and market integrity.

U.S. Attorney Jay Clayton said insider trading undermines confidence in financial systems and confirmed that the case is being actively prosecuted.

Polymarket, which operates alongside other prediction platforms such as Kalshi, allows users to bet on real-world outcomes, though it prohibits trading based on non-public information.

Google and Polymarket respond to allegations

Google confirmed it is cooperating with law enforcement and said the employee violated internal policies by using confidential information for trading activity.

The company said the staff member had access to internal marketing tools but misused restricted data, adding that he has been placed on leave pending further action.

Polymarket, for its part, said it worked with U.S. authorities and regulators during the investigation, noting that blockchain-based trading leaves traceable records that can help identify misconduct.

The case adds to a growing number of enforcement actions involving prediction markets, as regulators tighten scrutiny over insider trading risks in emerging digital betting ecosystems.

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