Google engineer charged with insider trading after making $1.2M on Polymarket | TechCrunch

The U.S. Justice Department charged Google software engineer Michele Spagnuolo with insider trading. The charge alleges Spagnuolo used confidential business information to trade on Polymarket and earned more than $1.2 million in profits. Spagnuolo allegedly used the handle “AlphaRaccoon” on the platform. The complaint also alleges Spagnuolo risked over $2.7 million on wagers tied to Google’s 2025 Year in Search marketing campaign. The alleged bets were informed by confidential internal Google Search data about the most-searched celebrities. Prediction markets such as Polymarket and Kalshi allow betting on many topics, but insider trading is illegal and some users still commit it. Polymarket stated it cooperated with U.S. authorities and that transparency and traceability help identify wrongdoing.

"“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,” Jay Clayton, the United States Attorney for the Southern District of New York, said in a press release. “Insider trading compromises the integrity of our markets, and the American people want this greed-driven conduct investigated and prosecuted.”"

"According to the complaint, Spagnuolo risked over $2.7 million on wagers related to Google's 2025 Year in Search, a marketing campaign in which Google reveals the world's most popular searches of the year. Spagnuolo allegedly accessed confidential, internal Google Search data about the most-searched celebrities to inform his bets."

"Prediction markets like Polymarket, Kalshi, and others allow users to bet on pretty much anything. Insider trading is not allowed on these platforms because it's illegal, but some users still commit the offense. The Justice Department recently charged a U.S. Army soldier for allegedly using his insider knowledge of the U.S. military operation to capture Venezuelan president Nicolás Maduro to make $400,000 on Polymarket."

"“Polymarket worked closely with the U.S. Attorney's Office for the Southern District of New York and the CFTC, and is the only prediction platform to date whose cooperation has led to insider trading charges in the United States,” a Polymarket spokesperson told TechCrunch. “Blockchain trading is transparent, traceable, and bad actors leave footprints. We are committed to maintaining accurate, fair, and transpar"

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