Key Takeaways:
A Google software engineer was charged with insider trading on Polymarket after allegedly using confidential company data to make $1.2 million betting on the platform's search-related contracts.
Michele Spagnuolo, 36, "misappropriated confidential and valuable nonpublic information from his employer" and used it to place Google-related bets, according to a criminal complaint unsealed Wednesday in the Southern District of New York. He faces charges of commodities fraud, wire fraud and money laundering.
Spagnuolo placed 16 transfers on Polymarket from about October to December 2025 under the account name AlphaRaccoon, prosecutors said. He wagered that singer d4vd would be the most-searched person on Google in 2025 — a bet Polymarket assigned a near-zero probability at the time. After Google publicly released its Year in Search 2025 results on Dec. 4, Spagnuolo's account profited $1.2 million.
The case marks the second insider trading prosecution tied to Polymarket this year. In April, U.S. special forces soldier Gannon Van Dyke pleaded not guilty to charges of using classified information about the raid to capture Venezuelan leader Nicolás Maduro to profit from wagers on the platform. "We're working with law enforcement on their investigation," a Google spokesperson said. "Using such confidential information to place bets is a serious breach of our policies."
Spagnuolo, an Italian citizen, was arrested Wednesday in New York and released on a $2.25 million bond secured by $1 million cash. He did not enter a plea during his appearance before a federal magistrate judge. The case shows federal prosecutors are increasingly treating prediction markets as subject to the same insider trading laws that govern securities and commodities markets, raising compliance questions for platforms like Polymarket that have seen explosive growth in user activity.
This article is for informational purposes only and does not constitute investment advice.
