Google Engineer Charged for $1.2M Insider Trading Using Search Data
GOOG•The U.S. Justice Department charged a Google software engineer with insider trading on Polymarket after he used confidential ‘most-searched’ list data to earn $1.2 million. He placed near-zero probability bets on indie musician D4vd following his arrest and on Kendrick Lamar based on internal search trends.
1. Charges and Allegations
Federal prosecutors allege that 36-year-old Google software engineer Michele Spagnuolo used insider knowledge of Google’s most-searched list to place lucrative bets on Polymarket, resulting in $1.2 million in profits. The complaint unsealed in Manhattan federal court charges him with exploiting nonpublic information for personal gain.
2. Trading Method
Spagnuolo, trading under the alias “AlphaRaccoon,” bet on D4vd topping the most-searched list after his arrest and on Kendrick Lamar based on pre-release search trajectory, with markets assigning near-zero probability to those outcomes. Investigators say he accessed internal analytics showing real-time search trends.
3. Company Response and Implications
Google has placed the engineer on leave and is cooperating with the Justice Department investigation, citing a serious breach of company policy. The case raises broader governance and compliance questions, potentially prompting tighter controls on employee access to sensitive search data.
