The US Department of Justice accused Google software engineer Michele Spagnuolo of insider information usealleging that the employee made $1.2 million trading at Polymarket based on confidential business information.
Spagnuolo, who used the name “AlphaRaccoon” on Polymarket, has worked at Google for more than 12 years, according to information from LinkedIn.
“As alleged, Spagnuolo violated his duties to his employer and used Google’s confidential business information to obtain more than $1.2 million in trading profits at Polymarket,” Jay Clayton, U.S. Attorney for the Southern District of New York, said in a news release. “Insider trading compromises the integrity of our markets, and the American people want this greed-driven conduct investigated and prosecuted.”
Prediction markets like Polymarket, Kalshi and others allow users to bet on virtually anything. Insider trading is not allowed on these platforms because it is illegal, but some users still commit the crime. The Department of Justice recently accused a US Army soldier for allegedly using his inside knowledge of the US military operation to capture Venezuelan President Nicolás Maduro to win $400,000 at Polymarket.
According to the complaint, Spagnuolo risked more than $2.7 million in bets related to Google’s business. 2025 Year in Searcha marketing campaign in which Google reveals the most popular searches of the year in the world. Spagnuolo allegedly accessed confidential internal Google Search data on the most searched celebrities to inform his bets.
“Polymarket worked closely with the United States 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 transparent markets, as well as enforcing our rules and working with our regulators and authorities.”
A Google spokesperson told TechCrunch that the company is working with authorities on their investigation.
“The employee accessed our marketing materials using a tool available to all employees, but using such sensitive information to place bets is a serious violation of our policies,” Google said in an emailed statement, “We have placed the employee on leave and will take appropriate action.”
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