Google Engineer Charged With Insider Trading on Polymarket, Profiting $1.2 Million

By: Harsh Vardhan

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Updated on: 29-May-2026 04:00 PM

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A Google engineer has been charged with insider trading after allegedly using confidential company information to earn over $1.2 million on Polymarket. The US Department of Justice accused Michele Spagnuolo, a 36-year-old Italian citizen living in Switzerland, of placing bets using non-public Google data. Spagnuolo reportedly used the alias “AlphaRaccoon” to make these trades.

Key Highlights

• Google engineer accused of insider trading on Polymarket using confidential company information
• Michele Spagnuolo allegedly profited $1.2 million by betting on Google-related outcomes
• Spagnuolo faces up to 50 years in prison if convicted of all charges

Details of the Alleged Insider Trading

According to the Department of Justice, Spagnuolo created his Polymarket account in May 2024. Between October 15, 2025, and December 4, 2025, he placed bets totaling around $2.75 million on markets tied to Google’s internal information. Polymarket allows users to bet on various outcomes, including the release of AI models and company valuations.

Spagnuolo allegedly accessed Google’s internal data systems, including a software tool marked “Google Confidential.” Prosecutors stated that he had certified his understanding of Google’s confidentiality and ethics policies. Using this access, he placed bets on events such as the most searched person on Google in 2025 and other search-related outcomes.

After Google announced its Year in Search 2025 results on December 4, 2025, the AlphaRaccoon account reportedly made about $1.2 million in profit. Observers on Polymarket had flagged the account in December due to suspicious trades related to search contracts.

Legal Actions and Company Response

Spagnuolo faces charges under the Commodity Exchange Act, wire fraud, and money laundering. These charges carry a combined maximum sentence of 50 years in prison. He also faces a civil case from the Commodity Futures Trading Commission, which alleges insider trading.

Authorities arrested Spagnuolo in New York on Wednesday morning. He appeared before a federal magistrate judge and did not enter a plea. The court released him on a $2.25 million bond.

Google confirmed that Spagnuolo accessed marketing material using a tool available to all employees. However, the company stated that using confidential information to place bets is a serious breach of its policies. Google has placed Spagnuolo on leave and plans to take further action.

Broader Context and Industry Response

This case is not the first to raise concerns about insider trading on prediction markets. Earlier in the year, the White House warned staff against using insider information for betting. Previous reports highlighted worries about government officials making bets with non-public data.

Polymarket stated it is committed to maintaining accurate, fair, and transparent markets. The platform said it works with regulators and law enforcement to enforce its rules.