Google engineer charged with insider trading on Polymarket for $1.2M

Michele Spagnuolo allegedly used confidential Google search data to place winning bets on the prediction market platform, federal prosecutors say.

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Add us on Google by Editorial Team May. 28, 2026

A 36-year-old Google software engineer allegedly turned confidential search trend data into a $1.2 million payday on Polymarket, and federal prosecutors are not amused.

Michele Spagnuolo was charged with commodities fraud, wire fraud, and money laundering after a criminal complaint was unsealed in the Southern District of New York. The charges allege he used nonpublic internal data from Google, specifically tied to the company’s Year in Search results, to place bets on Polymarket that he knew would pay out.

The “AlphaRacoon” strategy

Spagnuolo traded under the pseudonym “AlphaRacoon” during late 2025, wagering over $2.7 million on the prediction market platform.

As a Google engineer, Spagnuolo reportedly had access to sensitive internal data about search trends.

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One of his most notable bets involved predicting that D4vd, an artist also known as David Anthony Burke, would be the most searched person on Google in 2025. That prediction came true after D4vd was arrested in connection with serious criminal charges, an event that drove massive search volume.

The roughly $1.2 million in alleged profits came from a total wager pool exceeding $2.7 million.

Covering the tracks

Prosecutors allege Spagnuolo didn’t just stop at placing the bets. He also attempted to obscure the money trail using financial mixing services and token swaps, tools commonly associated with laundering crypto proceeds.

Spagnuolo appeared in court and was released on a $2.25 million bond. He has been placed on temporary leave from Google while the case proceeds.

A pattern forming on Polymarket

This case marks the second notable insider trading incident linked to the platform in a matter of months.

That pattern has caught Washington’s attention. The House Oversight Committee has launched a probe into insider trading on prediction markets, examining whether the regulatory framework around these platforms is adequate.

Polymarket rose to mainstream prominence during the 2024 US presidential election cycle, when its betting markets became a widely cited alternative to traditional polling. The Commodity Futures Trading Commission has previously taken action against Polymarket.

What this means for investors and the prediction market space

For now, Spagnuolo faces three federal charges that collectively carry significant prison time. His case will likely become a reference point in every future debate about whether prediction markets need the same regulatory guardrails as traditional financial exchanges.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.