What is the Google employee accused of doing on Polymarket?

US prosecutors allege Google software engineer Michele Spagnuolo used confidential company information to place profitable bets on Polymarket. Authorities claim he earned about $1.2 million using unreleased Google search trend data.

What information did prosecutors say was used for the bets?

The Justice Department alleged Spagnuolo accessed internal “Year in Search 2025” data before it became public. Prosecutors said he used that information to place 25 bets on prediction markets tied to the most-searched individuals on Google.

How much money was allegedly wagered on Polymarket?

Authorities said the bets totalled roughly $2.7 million. Prosecutors claim the trades generated about $1.2 million in profits because the account correctly predicted outcomes that markets considered unlikely.

What is the “AlphaRaccoon” account?

Federal prosecutors alleged that “AlphaRaccoon” was the Polymarket account used to place the insider bets. The account reportedly changed its username later after online users speculated it may belong to a Google insider.

What charges does Michele Spagnuolo face?

The Justice Department charged Spagnuolo with commodities fraud, wire fraud and money laundering. If convicted on all counts, he could reportedly face up to 50 years in prison.

Why is the CFTC involved in the case?

The Commodity Futures Trading Commission filed a parallel civil complaint because prediction markets can fall under commodities and derivatives regulation. The agency is seeking penalties, restitution and trading bans.

Why are prediction markets facing more scrutiny?

Lawmakers and regulators are increasingly concerned that people with access to non-public information could profit unfairly on platforms like Polymarket and Kalshi. Insider trading risks have become a growing issue as prediction markets expand.

How did prosecutors say the funds were hidden?

Authorities alleged that funds from the AlphaRaccoon account were moved through decentralised swapping services and privacy-focused crypto transfer tools. Prosecutors claim those steps were intended to obscure ownership and transaction trails.

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Google engineer charged over Polymarket insider bets

Written by Liezl GambePublished May 28, 2026, 5:33 AM

US prosecutors charged Michele Spagnuolo with commodities fraud, wire fraud and money laundering after alleging he used confidential Google search data to place profitable bets on Polymarket.

The Justice Department said Spagnuolo allegedly accessed non-public internal Google information and used it to place 25 prediction market bets worth roughly $2.7 million related to Google’s “Year in Search 2025” results.

Prosecutors claimed the Polymarket account “AlphaRaccoon” generated approximately $1.2 million in profits by correctly predicting outcomes the broader market viewed as highly unlikely, including singer D4vd becoming Google’s most-searched person of 2025.

Federal authorities also alleged the account later changed its username and moved funds through decentralised crypto swapping and privacy-related transfer services in an effort to obscure ownership and transaction origins.

The Commodity Futures Trading Commission filed a parallel civil complaint seeking restitution, monetary penalties and trading bans tied to the alleged insider trading activity.

Google confirmed it is cooperating with law enforcement and said Spagnuolo had been placed on leave, calling the alleged use of confidential company information for prediction market betting “a serious breach” of company policy.

The case marks one of the highest-profile insider trading prosecutions involving crypto prediction markets and arrives amid increasing congressional and regulatory scrutiny over whether platforms like Polymarket and Kalshi are adequately preventing abuse of non-public information.