Google Engineer Charged with Insider Trading on Polymarket

A software engineer working for Google has been officially charged in the US for an alleged plot to misuse confidential company information to make large profits through a prediction market site.

“AlphaRaccoon” Account Tied to $1.2M Insider Trading Case

Michele Spagnuolo, 36, an Italian citizen residing in Switzerland, is accused of using his privileged access to Google’s internal systems to place highly informed bets on Polymarket, federal prosecutors in New York said. Authorities say he made more than $1.2 million in profits from his activities in a brief period of time.

Investigators said Spagnuolo participated in prediction markets based on Google’s search trends from a private account, “AlphaRaccoon.” These markets allow users to bet on the chance that specific future events will come to pass, such as which topics or people will be most popular in search rankings. He was able to predict outcomes with unusual accuracy, using data that was not public, according to reports.

The complaint says Spagnuolo made nearly $2.75 million in trades linked to internal search analytics between mid-October and early December 2025. Prosecutors said his bets frequently involved unlikely situations that could only be predicted by using Google’s secret data tools.

The charges are commodities fraud, wire fraud, and money laundering, all of which carry substantial potential prison sentences. Spagnuolo faces decades in prison if convicted on all counts. Any sentencing will ultimately be determined by a judge.

Probe Highlights Risks of Insider Abuse in Prediction Markets

The case underscores ongoing concerns about insider activity on emerging financial platforms, law enforcement officials said. Those privy to sensitive corporate information should not use it for personal financial gain, particularly in markets that depend on equal access to information for fairness, they said.

The probe also reflects increasing scrutiny of prediction markets, which have exploded in recent years. Regulators and lawmakers have increasingly questioned how these platforms should be governed, especially if users might try to exploit nonpublic or classified data.

Google said it has suspended the worker and is cooperating with authorities. The company said the alleged behavior was against its internal policies on data protection and ethical standards.

The involved platform, Polymarket, has allegedly helped investigators spot suspicious trading patterns. Company sources have cited blockchain transparency as a way to track activity, lending credence to claims that illicit activity on such platforms can be traced via digital footprints.This is one of the highest-profile cases of alleged insider trading in prediction markets, an area that continues to be a focus for investors and regulators as it evolves.