Google worker charged for using internal data to make $1.2m on Polymarket
Source: BBC Technology
Overview
A Google employee has been arrested for allegedly using his access to company information to place lucrative bets on the prediction platform Polymarket.
The U.S. Attorney for the Southern District of New York charged Michele Spagnuolo, a Google engineer, with insider‑trading violations after he placed several bets through the platform that netted about $1.2 million (£894,330) in winnings.
Spagnuolo is an Italian citizen who lives in Switzerland. He was arrested on Wednesday and brought before a federal judge in New York.
Alleged Misuse of Internal Information
Spagnuolo is accused of using early‑access marketing material from Google—information available through an internal tool—to inform his bets. Google’s spokesperson said the company is “working with law enforcement on their investigation” and that the employee has been placed on leave.
A Polymarket spokesman added that the platform “worked closely” with authorities, noting that “blockchain trading is transparent, traceable, and bad actors leave footprints.” Polymarket only accepts cryptocurrency for betting.
Investigation and Arrest
- The U.S. Attorney’s Office coordinated with the Federal Bureau of Investigation (FBI) on the arrest.
- Spagnuolo was released on a $2.25 million bond (source: ABC News).
- He traded on Polymarket under the account name AlphaRaccoon. Although the bets were made with cryptocurrency from several accounts, the FBI linked them to Spagnuolo by identifying an account opened with an Italian ID card.
Employment Background
- Google engineer for more than 12 years, focusing on information security.
- Began using Polymarket in 2024.
Betting Activity
- Between October and December 2023, the U.S. Attorney’s Office says Spagnuolo placed $2.7 million in bets related to Google.
- By leveraging internal data, he allegedly earned over $1 million in profit.
Notable Wins
- Correctly predicted the most‑searched person on Google for 2025.
- Bet against names such as Bianca Censori and President Donald Trump, while backing musician D4vd to take the top spot—odds that were “near zero.”
According to court papers, Spagnuolo placed the D4vd bet in November 2023, knowing the artist would become Google’s most‑searched person because he had access to pre‑release search data.
D4vd, a musician, is currently in jail for allegedly murdering a teenage girl.
Responses
- Google: The employee has been placed on leave; the company is cooperating with law enforcement.
- Polymarket: Emphasized the transparency of blockchain trading and its cooperation with investigators.
Image credit: EPA