Google Engineer Faces Charges After $1.2M Insider Trading on Polymarket
Google software engineer Michele Spagnuolo is charged by U.S. Justice Department with insider trading after using internal search data to profit $1.2 million on Polymarket, risking over $2.7 million on bets tied to Google’s 2025 Year in Search campaign. Google has placed him on leave and is cooperating with investigators.
1. Insider Trading Charges
The U.S. Justice Department charged Michele Spagnuolo with insider trading, accusing the Google engineer of using confidential search data to inform trades on Polymarket. The complaint alleges he violated his duty to Google and faces federal prosecution.
2. Trading Mechanics
Trading under the username “AlphaRaccoon,” Spagnuolo reportedly risked over $2.7 million on Polymarket bets tied to Google’s 2025 Year in Search campaign, netting $1.2 million when the results were announced. He allegedly accessed a marketing tool to obtain internal search rankings for top celebrities.
3. Google Response
Google placed Spagnuolo on leave and is cooperating with investigators while reviewing policy breaches. The company highlighted that its employees have access to the tool but underscored that using confidential information for trading violates internal rules.
4. Market and Regulatory Impact
Polymarket’s cooperation with regulators led to the first insider trading charges in U.S. prediction markets, emphasizing blockchain transparency and traceability. The case underscores heightened scrutiny on prediction market practices and enforcement by the Justice Department and CFTC.
