Google employee charged with insider trading over Polymarket bets
US prosecutors say a Google engineer used confidential data to make over $1.2m betting on Google search trends on Polymarket.
Intelligence analysis by GPT-5.4 Mini
US authorities accuse a Google software engineer of using inside information about the company’s annual search data to place bets on Polymarket. The case adds another high-profile test of how prediction markets are policed when traders may have access to nonpublic information.
A Google worker is accused of using secret company information to guess the outcome of a betting market before other people could know it. That is like peeking at the answers before a school quiz and then placing a bet on the result.
The bets were on a website called Polymarket, where people bet on what will happen in the world. Prosecutors say the worker made a lot of money from those bets.
Google says this broke company rules. Police and prosecutors say cases like this matter because betting only works fairly when everyone has the same information.
Analysis
What prosecutors say
US prosecutors in New York accuse Google software engineer Michele Spagnuolo of using confidential information to trade on Polymarket and profit from Google’s annual "Year in Search" results. According to the criminal complaint, he allegedly used an account called "AlphaRaccoon" and placed roughly $2.75m in bets tied to the rankings.
The alleged trades
The complaint says Spagnuolo, an Italian citizen living in Switzerland, correctly predicted that indie pop musician d4vd would be the most-searched person for 2025, and did so hours after accessing confidential data at Google. Authorities say the conduct led to more than $1.2m in winnings. He now faces charges including commodities fraud, wire fraud and money laundering.
Company and platform response
Google said it is cooperating with law enforcement and called the alleged use of confidential information a serious breach of policy. A Google spokesperson said Spagnuolo has been placed on leave. Polymarket said it worked with the US Attorney’s Office and described itself as the only prediction platform whose cooperation has led to insider trading charges in the United States.
Wider context
The article also notes a separate case last month in which a US soldier was charged over Polymarket bets tied to the alleged abduction of Venezuelan President Nicolas Maduro. Together, the cases suggest regulators are paying closer attention to whether prediction markets are being used with inside information rather than public insight.
Key points
- US prosecutors say a Google engineer used confidential information to bet on Google search results.
- Authorities allege the bets on Polymarket earned more than $1.2m from about $2.75m in wagers.
- The complaint says the trader used the account name "AlphaRaccoon" and predicted the top-searched person for 2025.
- Google says it is cooperating with law enforcement and has placed the employee on leave.
- Polymarket says it worked with prosecutors and supports fair, transparent markets.
