Google Engineer Accused of Insider Trading After Making $1.2M on Polymarket

The U.S. Justice Department has indicted Google software engineer Michele Spagnuolo for insider trading, alleging that he profited $1.2 million by trading on Polymarket using proprietary business information.

Spagnuolo, who goes by the name “AlphaRaccoon” on Polymarket, has been employed at Google for over 12 years, according to his LinkedIn profile.

“As alleged, Spagnuolo violated the responsibilities he owed to his employer by utilizing Google’s confidential data to gain over $1.2 million in profits from trading on Polymarket,” stated Jay Clayton, the U.S. Attorney for the Southern District of New York, in a press release. “Insider trading erodes market integrity, and the American public expects such greed-driven actions to be properly investigated and prosecuted.”

Prediction markets like Polymarket and Kalshi allow users to bet on a wide range of topics. Although these platforms ban insider trading due to its illegality, breaches do happen. Recently, the Justice Department charged a U.S. Army soldier for allegedly using insider information related to a U.S. military operation to apprehend Venezuelan President Nicolás Maduro, leading to $400,000 in profits on Polymarket.

As per the complaint, Spagnuolo made over $2.7 million in wagers regarding Google’s 2025 Year in Search, an initiative where Google reveals the most popular searches of the year. He reportedly accessed confidential internal Google Search data about the top searched celebrities to inform his bets.

“Polymarket worked closely with the U.S. Attorney’s Office for the Southern District of New York and the CFTC, making it the only prediction market whose cooperation has led to insider trading charges in the U.S.,” a Polymarket representative told TechCrunch. “Blockchain trading is transparent and traceable, meaning that misconduct leaves behind evidence. We are committed to fostering fair and transparent markets while collaborating with regulators and law enforcement.”

A Google spokesperson informed TechCrunch that the company is working with law enforcement throughout the investigation.

“The employee accessed our marketing materials using tools available to all staff, but using such confidential information for personal bets is a serious violation of our policies,” Google stated in an email. “We have placed the employee on leave and will take appropriate action.”