US charges Google security engineer with Polymarket insider trading
A Google security engineer was charged after allegedly using confidential search trend data to make about $1.2 million on Polymarket.
Intelligence analysis by GPT-5.4 Mini
Federal prosecutors say a long-time Google security engineer used internal “Year in Search” data to place highly accurate Polymarket bets through an alias. The case includes parallel criminal and CFTC actions, plus allegations of crypto laundering after the winnings were paid out.
A worker at Google is accused of using secret company information like a cheat sheet. He then placed bets on a crypto betting site using a fake name and won a lot of money.
Think of it like someone looking at the answers before a quiz and then betting on the results. That is why prosecutors say it was unfair and illegal.
The story matters because it shows that private company information can be turned into cash very quickly, and police can still follow the trail through payments and crypto wallets.
Analysis
What prosecutors allege
Federal authorities say Michele Spagnuolo, a 36-year-old Google security engineer and Italian citizen living in Switzerland, used confidential internal data to trade on Polymarket. He had worked at Google since 2014 and was charged in the Southern District of New York on Wednesday.
How the scheme is described
According to the criminal complaint, Spagnuolo accessed an internal tool that contained Google’s “Year in Search” data, which was marked with a red “Google Confidential” banner. Starting in October 2025, prosecutors say he used a Polymarket account under the name “AlphaRaccoon” to bet on whether specific people would appear on Google’s top trending search lists.
The article says he made near-perfect bets across about 25 unlikely outcomes while risking roughly $2.75 million in total. After Google publicly released its Year in Search results on December 4, 2025, the AlphaRaccoon account allegedly collected about $1.2 million in USDC.e winnings. The complaint says Polymarket later released millions of USDC.e to the account over several days in December.
Traceability and charges
Investigators say the FBI linked AlphaRaccoon to a payment processor account in Spagnuolo’s name and an Italian government ID. The story also says online speculation on Discord and X prompted the username to disappear, reverting the account to an alphanumeric wallet address.
Prosecutors further allege that Spagnuolo moved the proceeds through multiple crypto-swapping services, including one that removes wallet addresses from the blockchain. In parallel, the CFTC filed a civil complaint seeking restitution, disgorgement, penalties, and trading and registration bans. He now faces up to 10 years on commodities fraud and up to 20 years each on wire fraud and money laundering counts.
Key points
- Federal prosecutors say a Google security engineer used confidential Year in Search data to trade on Polymarket.
- The alleged betting account, “AlphaRaccoon,” won about $1.2 million in USDC.e after Google published its results.
- The complaint says the bets were made with near-perfect accuracy across roughly 25 unlikely outcomes.
- Investigators say the FBI linked the account to a payment processor and an Italian government ID.
- The CFTC also filed a civil case seeking penalties, restitution, and trading bans.
