Google Engineer Charged Over $1.2M Polymarket Trades

Michele Spagnuolo, a 36-year-old software engineer employed by Google, has been charged by U.S. prosecutors with using confidential internal search information to place trades on the prediction market Polymarket and earn roughly $1.2 million. The criminal complaint was unsealed Wednesday alongside a civil suit filed by the Commodity Futures Trading Commission.

Prosecutors allege Spagnuolo placed at least 23 trades on Polymarket from October through December 2025 using an account named “AlphaRaccoon.” The filings say those trades targeted contracts tied to Google’s 2025 Year in Search list, including markets labeled “#1 Searched Person on Google this year” and “Top 5 Most Searched People on Google 2025.” Authorities contend the wagers were timed to benefit from internal marketing materials and search data not yet public.

The criminal complaint charges Spagnuolo with commodities fraud, wire fraud and money laundering. Each count carries a maximum prison term: up to 10 years for commodities fraud and up to 20 years for each of the wire fraud and money laundering counts. The CFTC’s civil filing alleges insider trading under the Commodity Exchange Act and seeks civil monetary penalties, restitution and trading bans.

Court records show Spagnuolo was arrested in New York on Wednesday, did not enter a plea and was released on a $2.25 million bond.

Google has placed Spagnuolo on leave and is cooperating with investigators. A Google spokesperson wrote that 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.”

Polymarket’s systems flagged the activity and the platform referred the matter to law enforcement. Polymarket wrote on X that its “market integrity infrastructure” identified the trader and that the company has referred suspected wrongdoing to authorities.

U.S. Attorney Jay Clayton said the accused “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.” CFTC Chair Michael Selig stated the agency’s filing reflects its effort to root out insider trading and promote integrity in prediction markets.

Prediction markets allow users to buy positions on the likelihood of real-world events, and many use blockchain technology that records trades on a public ledger. Regulators and platform operators have increased scrutiny of such markets for the potential use of nonpublic information. The Spagnuolo case follows a recent enforcement action linked to Polymarket in which an active-duty U.S. service member was accused of placing bets based on confidential information prior to an event involving a foreign leader.

Prosecutors say the alleged trades occurred while Google was finalizing and distributing internal materials about its annual search rankings. The filings state those materials were accessible to employees through internal tools and that prosecutors allege Spagnuolo used that access to place timely wagers before the information was made public.

The criminal and civil actions underscore coordination between regulators and trading platforms when suspected insider trading is detected. Google said it will complete its internal review and take disciplinary steps as warranted while continuing to cooperate with the investigation.