US Justice Department Charges Google Engineer with USD 1.2 Million Insider Trading Scheme on Polymarket
Google engineer Michele Spagnuolo has been charged by the US Justice Department with insider trading after allegedly earning USD 1.2 million through bets on Polymarket. Prosecutors claim he used confidential Google Year in Search data to place USD 2.7 million in wagers. Authorities credited blockchain transparency and Polymarket’s cooperation for identifying the activity.
The United States Department of Justice has formally charged Michele Spagnuolo, a long-term software engineer at Google, with insider trading. Prosecutors allege that Spagnuolo exploited confidential internal data to generate over USD 1.2 million in illicit profits through the decentralised prediction market platform, Polymarket.
Spagnuolo, who reportedly utilised the username AlphaRaccoon on the platform, has been employed by Google for more than 12 years. According to the criminal complaint, the engineer leveraged his position to access non-public information regarding Google’s 2025 Year in Search campaign, a high-profile marketing initiative that discloses the most popular internet search queries of the year. Stay Alert Against Digital Fraud, Update KYC Through Official Channels: PM Narendra Modi in ‘Mann Ki Baat’.
Federal investigators assert that Spagnuolo placed wagers totalling more than USD 2.7 million on specific search outcomes by accessing proprietary internal data concerning celebrity search rankings. By identifying these trends before their public release, prosecutors claim the defendant manipulated his market position to secure substantial financial gains.
Jay Clayton, the United States Attorney for the Southern District of New York, stated that Spagnuolo violated the duties owed to his employer by using confidential business information to fuel greed-driven conduct. The charges serve as a warning to participants in emerging prediction markets that illicit activity will be pursued by law enforcement agencies.
This case follows a broader trend of increased regulatory scrutiny directed at prediction markets such as Polymarket and Kalshi. Earlier, the Justice Department successfully charged a U.S. Army soldier for allegedly using classified knowledge regarding military operations to secure USD 400,000 in trading profits on the same platform.
A spokesperson for Polymarket confirmed that the company cooperated extensively with the U.S. Attorney’s Office and the Commodity Futures Trading Commission. The platform emphasised that blockchain-based trading provides a transparent and traceable record, making it difficult for bad actors to conceal their activities. US Paper Mill Disaster: 2 Killed, 9 Missing After Chemical Tank Explosion in Washington State.
Google has confirmed its full cooperation with law enforcement regarding the ongoing investigation into Spagnuolo’s activities. The case highlights the persistent risks corporations face when employees possess access to sensitive market-moving information, particularly as digital prediction platforms gain popularity. The Justice Department remains committed to prosecuting those who compromise the integrity of financial and prediction markets.
(The above story first appeared on LatestLY on May 28, 2026 10:55 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
