Google Engineer Faces Charges for Alleged Insider Trading on Polymarket
An Italian software engineer at Google has been accused of using confidential company data to engage in insider trading on a prediction market site, Polymarket. The allegations suggest a significant breach of trust within the corporate tech giant.
Michele Spagnuolo, aged 36 and residing in Switzerland, was arrested on Wednesday. He faces multiple charges, including commodities fraud, wire fraud, and money laundering. The accusations detail that he leveraged Google’s internal data to place wagers on search trends.
Insider Trading Allegations
According to the federal indictment, Spagnuolo allegedly accessed Google’s confidential search data, which he then used to make informed bets on Polymarket. Prosecutors claim he operated under the username AlphaRaccoon, placing bets on Google’s most-searched person of 2025.
Spagnuolo reportedly wagered nearly $1 million against Kanye West’s wife, Bianca Censori, being the most-Googled individual, and more than $600,000 that Pope Leo XIV would not take the top spot. He also placed a bet on rapper D4vd, who was facing legal issues, being the most searched, despite other traders giving it a low probability.
Financial Gains and Legal Proceedings
In total, Spagnuolo is said to have bet $2.7 million on 25 outcomes, earning a profit of $1.2 million. Post-transfer of winnings from his cryptocurrency wallet, he removed his username from the Polymarket account. The Commodity Futures Trading Commission has also filed a civil case against him for alleged violations of commodities law.
Google has confirmed its cooperation with the government’s investigation. “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,” stated Google spokesperson Jaclyn Vazquez.
Regulatory Challenges and Industry Growth
Polymarket’s chief legal officer, Olivia Chalos, emphasized the platform’s transparency, stating, “It is the only prediction platform to date whose cooperation has led to insider trading charges in the United States.” The prediction market industry, including sites like Kalshi and Polymarket, has grown in popularity, allowing users to bet on various outcomes ranging from geopolitical events to art auctions.
President Trump has expressed support for the prediction market industry, vowing to allow it to “thrive” under federal oversight. The administration is currently engaged in legal battles with state officials over regulatory authority, as some states view these platforms as gambling operations.
Despite the legal hurdles, prediction markets remain popular, with traders continuously searching for profitable opportunities. However, instances of suspiciously successful trades have led to scrutiny and legal actions, such as the recent case involving a U.S. Army Special Forces member.
Polymarket, based in Panama, has faced its own challenges, including a settlement with federal regulators in 2022 and a subsequent investigation into its operations. The Trump administration, however, dropped the investigation and even extended an invitation to the company’s founder for a summit on cryptocurrency.
Donald Trump Jr., an advisor to Polymarket and Kalshi, is also involved in the industry through his partnership in 1789 Capital, a significant investor in Polymarket.
This article was originally written by www.npr.org
