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May 27, 20261
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Google Employee Charged with $1.2 Million Insider Trading on Polymarket Using Search Data

A Google employee has been charged with using insider information from the company's Year in Search data to make $1.2 million in profitable bets on Polymarket prediction contracts. Michele Spagnuolo, operating as "AlphaRaccoon," faces charges of money laundering, commodities fraud, and wire fraud, becoming the second major insider trading case on the platform in recent months.
Quick Facts
Who
Michele Spagnuolo
What
Charged with insider trading fraud
When
December 2024 - flagged for suspicious trades
Where
Southern District of New York
- Charged with insider trading fraud
- Used confidential Google search data to place bets
- Operated Polymarket account "AlphaRaccoon"
- Profited from Year in Search 2025 contracts
- Faced money laundering and wire fraud charges
Federal prosecutors have charged Michele Spagnuolo, a staff information security engineer at Google, with fraud for allegedly using confidential company information to place winning bets on Polymarket, a prediction market platform. Spagnuolo is accused of accessing Google's internal data systems to obtain nonpublic Year in Search 2025 results, which he then used to trade on prediction contracts, netting approximately $1.2 million in profits.
Spagnuolo operated under the Polymarket username "AlphaRaccoon," which platform observers had flagged in December 2024 for suspicious trading activity. According to prosecutors, shortly after Google publicly announced its Year in Search 2025 results on December 4, 2025, the AlphaRaccoon account profited significantly from related bets. The complaint alleges Spagnuolo used a Google internal software tool available to employees to access the confidential search data, then misappropriated this information in breach of his duties of trust and confidentiality.
Spagnuolo faces multiple criminal charges in the Southern District of New York, including money laundering, commodities fraud, and wire fraud. He was arrested Wednesday morning and appeared before a federal magistrate judge, where he was released on a $2.25 million bond without entering a plea. He is also facing a separate civil case from the Commodity Futures Trading Commission on insider trading charges. Prosecutors indicate that Spagnuolo's successful predictions extended beyond the most-searched person contract to other Year in Search markets, including predictions about television shows and individuals.
Google responded to the charges by stating it was cooperating with law enforcement and emphasizing that while the employee had legitimate access to marketing materials, using confidential information for trading violates company policy. The company placed Spagnuolo on leave and indicated it would take appropriate action. Polymarket praised its own cooperation with regulators, noting it is the only prediction platform whose collaboration has led to insider trading charges in the United States.
This case marks the second high-profile insider trading prosecution involving Polymarket in recent months. In April, U.S. Army Special Forces Master Sergeant Gannon Ken Van Dyke was arrested for allegedly using classified military information to trade on contracts related to a U.S. operation against Venezuelan President Nicolás Maduro, generating over $400,000 in profits.
Why This Matters
This case reveals critical vulnerabilities in both corporate data security and cryptocurrency-based prediction markets. For ordinary investors, it demonstrates how insider trading on decentralized platforms can occur despite their perceived anonymity, raising questions about regulatory oversight of crypto trading venues. For businesses, it underscores the need for stricter data access controls and monitoring of employee behavior. The prosecution signals that U.S. authorities are actively pursuing enforcement on prediction markets and will hold even security engineers accountable—suggesting greater institutional scrutiny ahead for platforms like Polymarket.
Timeline & Sources
Dec 4, 2025
WireGoogle officially announced Year in Search 2025 results
May 27, 2026
WireMichele Spagnuolo arrested on insider trading charges
May 27, 2026
WireComplaint unsealed; Spagnuolo appeared before federal magistrate judge and released on $2.25 million bond