(AsiaGameHub) – A software engineer employed by Google has been indicted in New York in connection with alleged insider trading activities on Polymarket. According to prosecutors, Michele Spagnuolo purportedly leveraged confidential information from Google to generate over $1.2 million in profits from bets placed on a prediction market.
Key Details
- Michele Spagnuolo is accused of trading under the username AlphaRaccoon.
- Prosecutors claim he wagered more than $2.7 million on markets related to Google’s Year in Search data.
- Google has confirmed that the employee has been placed on administrative leave.
Google Data Becomes Central to Prediction Market Allegations
The Department of Justice has stated that Spagnuolo allegedly utilized internal Google Search data to place bets on markets associated with Google Year in Search 2025. The charges pertain to wagers made on lists of the most-searched individuals, with prosecutors asserting these bets were based on non-public company information.
Jay Clayton, the United States Attorney for the Southern District of New York, commented:
“As alleged, Spagnuolo breached the duties he owed to his employer and exploited Google’s confidential business information to secure over $1.2 million in trading profits on Polymarket.”
Polymarket has indicated its cooperation with the Southern District of New York and the CFTC. A representative for the company stated:
“Blockchain trading is transparent, traceable, and bad actors leave footprints.”
Google has also acknowledged a violation of its internal policies. The company issued a statement saying:
“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.”
This case represents another legal challenge for prediction markets, platforms where event contracts can cover outcomes in sports, politics, entertainment, and business. In a separate, recent case involving Polymarket, federal prosecutors charged a U.S. Army soldier accused of using classified military information to earn approximately $400,000.
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