The U.S. Justice Department has charged Google software engineer Michele Spagnuolo with insider trading, alleging he earned $1.2 million on the prediction platform Polymarket using confidential company information.
Spagnuolo and Polymarket
Operating under the pseudonym "AlphaRaccoon," Spagnuolo has been with Google for over 12 years, according to LinkedIn. The engineer is accused of using Google's internal data to place bets on Polymarket, a platform where users can wager on various topics. Jay Clayton, U.S. Attorney for the Southern District of New York, stated, "Insider trading compromises the integrity of our markets, and the American people want this greed-driven conduct investigated and prosecuted."
Details of the Charges
The complaint outlines that Spagnuolo wagered over $2.7 million on Google's 2025 Year in Search campaign, leveraging confidential data about the most-searched celebrities. This action is deemed a serious breach of Google’s policies. A Google spokesperson confirmed, "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."
Polymarket's Cooperation
Polymarket is working closely with the U.S. Attorney’s Office and the CFTC. A spokesperson from Polymarket stated, "Blockchain trading is transparent, traceable, and bad actors leave footprints. We are committed to maintaining accurate, fair, and transparent markets." They emphasized their commitment to cooperating with regulators and law enforcement to ensure market integrity.
Other Recent Cases
This case is part of a broader crackdown on insider trading in prediction markets. The Justice Department recently charged a U.S. Army soldier who allegedly used insider knowledge to make $400,000 on Polymarket regarding a U.S. military operation. Google has placed Spagnuolo on leave pending the investigation's outcome.
Source: https://techcrunch.com/2026/05/27/google-engineer-charged-with-insider-trading-after-making-1-2m-on-polymarket/
