Google Worker Charged Insider Trading Polymarket 1.2 Million | Full Story

A Google worker charged insider trading Polymarket $1.2 million has rocked the tech and cryptocurrency worlds. Michele Spagnuolo, a 36-year-old Italian citizen and Google software engineer of over 12 years, was arrested in New York on May 27, 2026. Federal prosecutors allege he abused his access to confidential internal data—specifically Google’s 2025 “Year in Search” rankings—to place lucrative bets on the prediction market platform Polymarket under the username “AlphaRaccoon” .


What Did the Google Employee Do to Get Charged With Insider Trading?

According to the criminal complaint unsealed in the Southern District of New York, Spagnuolo accessed Google’s internal data systems containing “Google Confidential” marketing material. This data revealed the company’s annual search rankings before they were publicly released on December 4, 2025. Between October and December 2025, he allegedly used this nonpublic information to place approximately $2.7 million in bets on Polymarket contracts tied to who would be the most searched person of the year.


How Did the Google Engineer Make $1.2 Million on Polymarket?

The engineer’s most profitable bet involved correctly predicting that singer D4vd (David Anthony Burke) would become Google’s #1 most searched person of 2025. At the time of his wager, Polymarket traders assigned “near-zero probability” to this outcome. Spagnuolo allegedly placed a 381 “yes” bet on D4v dranking among the top five, and a separate 5 bet on him taking the top spot—knowing from internal Google data accessed on November 27 that D4vd had replaced Kendrick Lamar as the trending leader.


He also placed massive “no” bets against other candidates, wagering 613,000 against Pope Leo XIV and over 500,000 against U.S. President Donald Trump becoming the most searched person. After Google publicly released its rankings, Spagnuolo’s AlphaRaccoon account netted approximately $1.2 million in profits.


Who Is Michele Spagnuolo and What Is AlphaRaccoon?

Michele Spagnuolo worked at Google for over 12 years as a staff information security engineer specializing in cybersecurity. Despite living in Switzerland, he was arrested in New York and appeared before a federal judge, where he was released on a $2.25 million bond. His Polymarket account, “AlphaRaccoon,” was created in May 2024. The FBI traced the account to him after discovering one wallet opened with his Italian identification card. Following online speculation about AlphaRaccoon’s suspiciously accurate bets on Discord and X, Spagnuolo allegedly attempted to launder his winnings through multiple cryptocurrency wallets.


What Are the Charges Against the Google Worker?

Spagnuolo faces criminal charges of commodities fraud, wire fraud, and money laundering. The U.S. Attorney for SDNY Jay Clayton stated: “Insider trading compromises the integrity of our markets, and the American people want this greed-driven conduct investigated and prosecuted” . If convicted on all counts, he faces up to 50 years in prison. The Commodity Futures Trading Commission (CFTC) simultaneously filed a civil complaint seeking restitution, disgorgement of profits, trading bans, and civil monetary penalties.

Why Is Using Internal Google Data for Betting Illegal?

While prediction markets like Polymarket operate with less stringent regulations than stock exchanges, insider trading laws still apply. The CFTC has jurisdiction over event contracts, and Chairman Michael S. Selig emphasized: “The Commission will not tolerate fraud, manipulation, or insider trading, regardless of the technology or platform that is used” . Spagnuolo allegedly violated duties of trust and confidentiality owed to Google, misappropriating commercially valuable data for personal financial gain—the core definition of insider trading.


How Did Polymarket Help Catch the Insider Trader?

Polymarket’s blockchain-based infrastructure played a crucial role in the investigation. A company spokesperson stated: “Blockchain trading is transparent, traceable, and bad actors leave footprints.” Polymarket worked closely with the FBI and U.S. Attorney’s office, claiming to be “the only prediction platform to date whose cooperation has led to insider trading charges in the United States” . The platform had previously updated its market integrity rules in March 2026 to explicitly prohibit insider trading and position manipulation.


What Is Google Doing to Prevent Data Misuse?

A Google spokesperson confirmed the employee has been placed on leave: “The employee accessed our marketing material using a tool available to all employees, but using such confidential information to place bets is a serious breach of our policies. We’re working with law enforcement on their investigation” . The case raises questions about internal data access controls at major tech companies.


FAQs

What did the Google employee do to get charged with insider trading?

Michele Spagnuolo allegedly used confidential Google “Year in Search” data to place 2.7 million in bets on Poly market, profiting 1.2 million by knowing search rankings before public release .

How did the Google engineer make $1.2 million on Polymarket?

He bet on long-shot outcomes like singer D4vd becoming the most searched person, using internal data showing D4vd’s rise, and placed large “no” bets against other candidates.

What are the maximum penalties for these charges?

Spagnuolo faces up to 50 years in prison if convicted on commodities fraud, wire fraud, and money laundering charges, plus potential civil penalties from the CFTC.

Why did the engineer bet against Donald Trump and Bianca Censori?

Internal Google data showed these public figures were not trending as the #1 most searched person, allowing Spagnuolo to place confident “no” bets totaling over $1 million.

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