Google Engineer Indicted for Alleged $1.2 Million Insider Trading Scheme on Polymarket

A Google engineer has been taken into custody by federal authorities for allegedly exploiting his privileged access to company data to generate $1.2 million in profits through bets placed on the cryptocurrency-based prediction market, Polymarket. Michele Spagnuolo, an Italian national residing in Switzerland, was arrested on Wednesday and appeared before a federal judge in New York. The U.S. Attorney’s Office for the Southern District of New York has charged him with violating insider trading laws.

According to prosecutors, Spagnuolo leveraged confidential information obtained through his role at the U.S.-based tech giant to place successful wagers. This activity resulted in approximately $1.2 million (£894,330) in winnings. While Spagnuolo is not a U.S. citizen, the charges stem from his use of Google’s internal systems.

Google confirmed its cooperation with law enforcement, stating that the employee has been placed on leave. A company spokesperson emphasized the severity of the alleged misconduct, noting that while the marketing materials in question were accessible via tools available to all staff, utilizing such confidential data for personal financial gain constitutes a "serious breach of our policies."

The investigation into Spagnuolo’s activities was conducted jointly by the U.S. Attorney’s office and the Federal Bureau of Investigation (FBI). Due to the nature of Polymarket, which accepts only cryptocurrency, the digital ledger provided a clear trail. A Polymarket representative stated that the platform collaborated closely with authorities, noting that "blockchain trading is transparent, traceable, and bad actors leave footprints."

Although Spagnuolo allegedly operated under the username "AlphaRaccoon" and utilized multiple cryptocurrency accounts, investigators successfully linked these digital identities to him. The FBI identified an account opened with an Italian identification card, connecting the online persona to the engineer. Spagnuolo has been released on a $2.25 million bond, according to ABC News. He did not respond to requests for comment.

Online professional profiles indicate that Spagnuolo had served as an information security engineer at Google for over 12 years. He began using Polymarket in 2024. Prosecutors allege that between October and December of last year, he placed $2.7 million in bets specifically related to Google. By leveraging non-public information, he reportedly secured more than $1 million in profits from these wagers.

Court documents highlight that Spagnuolo’s most significant alleged gains came from accurately predicting the outcomes of Google’s 2025 "Most Searched Person" contest. He placed bets against prominent figures such as Bianca Censori and former President Donald Trump, while backing singer D4vd for the top spot. At the time of the bet in November, the platform’s odds for D4vd were near zero.

Authorities state that Spagnuolo knew D4vd had already become the most-searched individual because he had access to Google’s internal search data prior to its public release. D4vd, a musician, is currently incarcerated, facing allegations related to the murder of a teenage girl.

Source: BBC News Generated at: 2026-05-28 02:14:19 UTC