Google Engineer Charged With Fraud After $1.2M Insider Bets
A Google security engineer allegedly used confidential Year-in-Search data to win $1.2 million in Polymarket bets and is charged with money laundering, commodities fraud and wire fraud. He was arrested May 27, released on a $2.25 million bond and now faces a CFTC civil case.
1. Charges and Allegations
Google information security engineer Michele Spagnuolo is accused of using confidential Year-in-Search data to place correct bets on Polymarket, netting $1.2 million. Prosecutors have charged him with money laundering, commodities fraud and wire fraud based on trades predicting the most searched person of 2025.
2. Legal Proceedings Underway
Spagnuolo was arrested in New York on May 27 and released on a $2.25 million bond. He faces federal criminal counts and a separate civil enforcement action by the Commodity Futures Trading Commission, which alleges insider trading on a prediction market.
3. Implications for Google
The case raises questions about the strength of Google’s internal controls over non-public data and may prompt a review of information security protocols. Investors will watch for any corporate governance changes or regulatory penalties that could affect the company’s reputation and operations.
