Google Engineer Charged for Making $1.2M on Polymarket Using Insider Search Data

# Google Engineer Charged for Making $1.2M on Polymarket Using Insider Search Data

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June 22, 2026 — A Google information security engineer has been charged with fraud after allegedly using confidential company data to win over $1.2 million on Polymarket, the blockchain-based prediction market platform. The case marks the latest in a growing wave of insider trading scandals involving prediction markets.

What Happened?

Michele Spagnuolo, 36, a Google information security engineer based in New York, was arrested Wednesday and charged with commodities fraud, wire fraud, and money laundering. According to a federal criminal complaint unsealed in the Southern District of New York, Spagnuolo used his access to Google’s internal data to place bets on Polymarket under the username AlphaRaccoon.

His biggest win? Correctly predicting that the singer D4vd would be Google’s most-searched person in 2025 — a bet that Polymarket’s market had assigned “near-zero probability” to at the time.

How Did He Do It?

Prosecutors allege Spagnuolo accessed Google’s confidential marketing materials and internal search trend data, which gave him foreknowledge of the company’s “Year in Search 2025” results before they were publicly announced on December 4, 2025.

“Unlike the counterparties to his trades, Spagnuolo knew the outcome of these wagers before the trading public did because he had accessed Google’s confidential, commercially valuable internal data,” the complaint states.

He also allegedly bet that Pope Leo XIV and Kendrick Lamar would not appear on Google’s Year in Search lists — bets that were difficult for the public to predict due to Google’s proprietary methodology for ranking search trends.

Once his wagers paid off, Spagnuolo took steps to conceal his profits by attempting to obscure the source and ownership of the funds, according to prosecutors.

Google’s Response

Google spokesperson Jaclyn Vazquez said in a statement:

“The employee accessed our marketing material using a tool available to all employees, but using such confidential information to place bets is a serious breach of our policies. We’ve placed the employee on leave and will take the appropriate action.”

Polymarket’s Role

Polymarket claimed on X that its “market integrity infrastructure” flagged Spagnuolo’s suspicious activity. The platform stated: “Blockchain trading is transparent, traceable, and bad actors leave footprints.”

This is the second Polymarket insider trading case brought by the Southern District of New York this year. In May, U.S. Army soldier Gannon Ken Van Dyke was charged for allegedly making a $400,000 Polymarket bet using classified information about the capture of Venezuelan President Nicolás Maduro.

The Bigger Picture

Prediction markets like Polymarket and Kalshi are under increasing regulatory scrutiny. Several states have pushed to regulate these platforms over insider trading concerns, though the CFTC claims exclusive authority over prediction markets and has pushed back on state-level efforts.

The case raises important questions about corporate data access, insider trading laws in the age of blockchain, and how companies like Google monitor employee access to sensitive internal data.

FAQ

Is Polymarket legal in the US?

Polymarket operates in a regulatory gray area. While the CFTC has taken action against prediction markets in the past, Polymarket has continued operating. The platform is not available to users in all states.

What charges does Spagnuolo face?

He is charged with commodities fraud, wire fraud, and money laundering. He was released on a $2.25 million bond and has not yet entered a plea.

Could this happen with other companies?

Absolutely. Any employee with access to non-public data that could influence prediction market outcomes could theoretically do the same. This case highlights the growing intersection of corporate data security and financial regulation.

What is Polymarket?

Polymarket is a decentralized prediction market platform built on blockchain technology. Users bet on the outcomes of real-world events, from politics to sports to tech trends.