Polymarket Insider Trading: Google Engineer Charged

Federal prosecutors charged Google software engineer Michele Spagnuolo on May 27, 2026, alleging he used confidential Google search-trend data to place bets on Polymarket under the alias "AlphaRaccoon," earning more than $1.2 million in profits. The charges include commodities fraud, wire fraud, and money laundering, accompanied by a parallel civil enforcement action by the Commodity Futures Trading Commission (CFTC).

Criminal Charges and Arrest

The U.S. Attorney’s Office for the Southern District of New York unsealed a complaint charging Spagnuolo with commodities fraud under the Commodity Exchange Act, wire fraud, and money laundering. The complaint alleges he exploited confidential Google search-trend data to place Polymarket bets that yielded over $1.2 million in trading profits.

Spagnuolo was arrested in New York and appeared before a federal magistrate judge, who released him on a $2.25 million bond secured partly by $1 million in cash, with $50,000 posted the same day. He did not enter a plea at the initial appearance. Court filings identify him as an Italian citizen residing in Switzerland.

The complaint states that after Google publicly released its Year in Search 2025 results, the "AlphaRaccoon" account transferred millions of dollars in cryptocurrency to an external wallet. Prosecutors allege he took steps to conceal the origin and ownership of these funds, supporting the money laundering charge.

CFTC Action and Industry Response

The CFTC filed a civil complaint paralleling the criminal charges, alleging commodities fraud based on the same conduct and treating Polymarket event contracts as commodity futures or swaps within its jurisdiction. Court papers describe a trading window from about October through December 2025, during which the "AlphaRaccoon" account executed roughly 16 transactions, placing about $2.7 million in wagers on whether certain celebrities, including musician d4vd, would appear on Google’s Year in Search 2025 list.

Google placed Spagnuolo on leave, calling the use of confidential information for personal bets a serious policy violation and stating it is cooperating with law enforcement. Polymarket, the blockchain-based prediction market platform involved, said it cooperated closely with the U.S. Attorney’s Office and the CFTC, noting its cooperation contributed to the enforcement actions.

The U.S. Attorney’s Office framed the case as insider trading involving prediction markets, emphasizing that misusing employer confidential information for personal gain violates duties of trust. This is at least the second insider-trading prosecution tied to a Polymarket user in recent months, signaling sustained enforcement attention on event-contract platforms.

“As alleged, Spagnuolo 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,” the U.S. Attorney’s Office said.

Google said the employee accessed marketing material using a tool available to all employees but that using such confidential information to place bets breaches company policy. The company has placed the employee on leave and will take appropriate action.

Polymarket stated it worked closely with the U.S. Attorney’s Office and the CFTC and is the only prediction platform so far whose cooperation has led to insider trading charges in the United States.