A Google employee has been charged with insider trading after allegedly using confidential company information to generate more than $1.2 million in profits through prediction market platform Polymarket.
Federal prosecutors allege that Michele Spagnuolo, a staff information security engineer at Google, accessed non-public company data and used it to place highly profitable bets on future events between October and December 2025.
Alleged Use of Confidential Google Data
According to court filings, Spagnuolo operated on Polymarket under the alias “AlphaRaccoon.” Prosecutors claim he accessed internal Google systems containing confidential marketing and search trend data before it became public.
Authorities allege that he placed approximately $2.7 million in wagers tied to Google-related prediction markets, including bets on the company’s annual Year in Search rankings and product release timelines.
One of his most successful positions involved correctly predicting highly unlikely search trend outcomes that Polymarket users had assigned little chance of occurring. Investigators say he achieved a 22-for-23 success rate on Google search prediction markets.
The account had previously generated significant profits by correctly predicting the release date of Google’s Gemini 3.0 Flash model.
Fraud and Money Laundering Charges Filed
Federal authorities arrested Spagnuolo on May 27, 2026. Prosecutors charged him with commodities fraud, wire fraud, and money laundering.
If convicted on all counts, he could face a maximum prison sentence of up to 50 years.
At the same time, the Commodity Futures Trading Commission (CFTC) filed a parallel civil action seeking financial penalties, restitution, disgorgement of profits, trading bans, and a permanent injunction.
Authorities also allege that Spagnuolo attempted to conceal his activities through cryptocurrency privacy tools and multiple accounts.
Blockchain Trail Led Investigators to the Suspect
Investigators traced the activity through publicly available blockchain records. The wallet linked to the AlphaRaccoon account reportedly deposited millions of dollars into Polymarket and generated substantial profits from Google-related markets.
The case gained public attention after users on X and Discord questioned the account’s unusually accurate predictions. Blockchain transparency allowed observers to review the account’s entire trading history despite later attempts to change usernames.
Law enforcement ultimately linked the activity to Spagnuolo through account records and identification documents.
Growing Scrutiny of Prediction Markets
The case highlights increasing regulatory attention on prediction markets and concerns about insider trading risks. Authorities argue that the alleged scheme undermined market integrity by giving one participant access to information unavailable to the public.
Google has placed Spagnuolo on leave and said it is cooperating with investigators as the case proceeds.
