Google information security engineer is accused of placing bets using insider information on Polymarket

(AsiaGameHub) –   Law enforcement authorities in New York arrested Google security engineer Michele Spagnuolo on charges of insider trading through Polymarket, a prediction market platform. ABC News reports this, citing criminal case documents from the U.S. Attorney’s Office for the Southern District of New York.

Michele Spagnuolo is a 36-year-old Swiss citizen. He has been charged with commodity fraud, wire fraud, and money laundering.

Using the account named “AlphaRaccoon,” he placed repeated bets on who would be the most-searched person on Google in 2025. He knew in advance that singer D4vd would be the top-searched individual on Google by the end of 2025, even though Polymarket had rated the probability of this outcome as nearly zero.

After Google released its 2025 Year in Search results, Spagnuolo’s AlphaRaccoon account made a profit of $1.2 million. Following his win, the engineer took measures to hide the source and ownership of the funds. The court released Spagnuolo on $2.25 million bail, with $1 million posted in cash. Google suspended the employee and stated that he accessed the data using a tool available to all company employees, while Polymarket confirmed close collaboration with authorities during the investigation.

A Google spokesperson said in a statement:

We are working with law enforcement on their investigation. The employee accessed our marketing materials using a tool available to all employees, but using such confidential information to place bets is a serious violation of our policies. We have placed the employee on leave and will take appropriate action.

This is the second case related to Polymarket that the U.S. Attorney’s Office for the Southern District of New York has brought this year.