Google Software Engineer Accused of Using Confidential Search Data to Earn $1.2 Million on Polymarket

The U.S. Justice Department has charged a Google software engineer with allegedly using confidential company information to make more than $1.2 million through trades on the prediction market platform Polymarket.

According to federal prosecutors, Michele Spagnuolo, who reportedly used the username “AlphaRaccoon” on Polymarket, accessed nonpublic Google Search data and used that information to place highly profitable wagers. Spagnuolo has worked at Google for more than a decade, according to his LinkedIn profile.

Prosecutors allege that Spagnuolo used internal information connected to Google’s annual “Year in Search” campaign, which highlights the most-searched topics and personalities of the year. The complaint claims he placed large bets based on confidential search trend data before it became publicly available.

U.S. Attorney Jay Clayton said the engineer allegedly violated his responsibilities to Google by using confidential business information for personal financial gain. Authorities charged him with commodities fraud, wire fraud, and money laundering.

Prediction market platforms such as Polymarket and Kalshi allow users to wager on future events, but insider trading remains prohibited. Regulators and law enforcement agencies have increasingly focused on cases where users may have used privileged information to gain an unfair advantage in these markets.

According to investigators, Spagnuolo allegedly risked more than $2.7 million on prediction contracts tied to Google’s search rankings. Authorities claim he accessed internal search trend data that was not publicly available and used it to guide his trading activity.

Polymarket said it cooperated with the investigation and emphasised that blockchain-based trading leaves transparent records that can help identify suspicious activity. The company stated that it remains committed to maintaining fair and transparent markets and enforcing its rules against insider trading.

Google also confirmed it is cooperating with law enforcement. In a statement, the company said the employee accessed internal marketing information through a tool available to staff, but using confidential company data for betting purposes represented a serious violation of its policies. Google added that Spagnuolo has been placed on leave while the investigation continues.

The case has become one of the highest-profile examples of alleged insider trading involving prediction markets. It highlights growing concerns about how confidential corporate information could be used in rapidly expanding event-based trading platforms.