A Google software engineer, Michele Spagnulo, has been accused of using confidential company information to make over $1.2 million in profits by placing bets on the prediction market platform Polymarket, according to a federal complaint unsealed in New York City on May 27, 2026 [1]. Spagnulo, a 36-year-old Italian citizen residing in Switzerland, faces charges of commodities fraud, wire fraud, and money laundering [1]. Prosecutors allege that Spagnulo accessed internal Google search data tracking user searches and used this nonpublic information to place a series of bets from October to December [1].
Court documents state that Spagnulo, operating under the username 'AlphaRacoon,' correctly wagered that D4vd, a singer accused of killing a teenage girl, would become Google's most-searched person of the year in 2025, at a time when the prediction market assigned a near-zero probability to this outcome [1]. After winning, Spagnulo allegedly took steps to conceal the source and ownership of his unlawful proceeds [1].
Google has responded by placing Spagnulo on leave and stated that while the employee accessed marketing material using a tool available to all employees, using such confidential information for betting is a serious breach of company policy [1]. The company is cooperating with law enforcement [1]. Polymarket emphasized its cooperation with regulators and law enforcement, noting it is the only prediction platform to date whose cooperation has led to insider trading charges in the United States [1].
This case marks the second significant criminal prosecution related to trades on Polymarket, following the April arrest of a U.S. Special Forces soldier accused of using classified information for betting on the platform [1]. Jay Clayton, U.S. attorney for the Southern District of New York, condemned 'greed-driven' insider trading and reiterated that corporate insiders cannot use confidential business information for personal profit in the markets [1].
CONCLUSION
The charges against the Google engineer highlight increased regulatory scrutiny and enforcement actions targeting insider trading on prediction markets. Both Google and Polymarket have pledged cooperation with authorities, underscoring the seriousness of using confidential information for personal gain. The case is likely to have significant implications for corporate compliance and the operation of prediction markets.