Google engineer charged with insider trading after making $1.2M on Polymarket

Source: TechCrunch

Charges

The U.S. Justice Department charged Google software engineer Michele Spagnuolo with insider trading, alleging he made $1.2 million trading on Polymarket based on confidential business information. The complaint states that Spagnuolo, who used the name “AlphaRaccoon” on Polymarket, risked over $2.7 million on wagers related to Google’s 2025 Year in Search marketing campaign. He allegedly accessed internal Google Search data about the most‑searched celebrities to inform his bets.

“As alleged, Spagnuolo violated the duties he owed to his employer and used Google’s confidential business information to make more than $1.2 million in trading profits on Polymarket,” said Jay Clayton, United States Attorney for the Southern District of New York, in a press release.

Background on Prediction Markets

Prediction markets such as Polymarket, Kalshi, and others allow users to bet on a wide range of outcomes. While insider trading is illegal on these platforms, some participants still engage in the conduct. The Justice Department recently charged a U.S. Army soldier for using classified information to make $400,000 on Polymarket.

Polymarket’s Response

“Polymarket worked closely with the U.S. Attorney’s Office for the Southern District of New York and the CFTC, and is the only prediction platform to date whose cooperation has led to insider trading charges in the United States,” a Polymarket spokesperson told TechCrunch. “Blockchain trading is transparent, traceable, and bad actors leave footprints. We are committed to maintaining accurate, fair, and transparent markets as well as enforcing our rules and working with our regulators and law enforcement.”

Google’s Statement

A Google spokesperson told TechCrunch that the company is cooperating with law enforcement. In an emailed statement, Google said:

“The employee accessed our marketing material using a tool available to all employees, but using such confidential information to place bets is a serious breach of our policies. We’ve placed the employee on leave and will take the appropriate action.”