What happened in the Google Polymarket insider trading case?

A Google software engineer, Michele Spagnuolo, was charged in the US after prosecutors accused him of using confidential Google search data to make more than US$1.2 million on Polymarket. The case centres on prediction-market contracts tied to Google’s 2025 Year in Search rankings.

Why does the Google Polymarket case matter for retail traders?

The Google Polymarket case matters because it shows regulators are watching prediction markets more closely. Prosecutors argue that using private company data to trade event contracts can create an unfair market, even when the platform uses crypto-based settlement.

How much money did Michele Spagnuolo allegedly make on Polymarket?

Prosecutors said Michele Spagnuolo made more than US$1.2 million through a Polymarket account called AlphaRaccoon. The complaint also said he risked about US$2.75 million between 15 October 2025 and 4 December 2025.

What confidential Google data was allegedly used in the Polymarket trades?

Prosecutors said Michele Spagnuolo accessed internal Google search rankings labelled Google Confidential. The data was allegedly tied to Google’s 2025 Year in Search results, including the most searched person and the top five searched people of 2025.

What charges does Michele Spagnuolo face in the Google Polymarket case?

Michele Spagnuolo faces charges including commodities fraud, wire fraud, and money laundering. Prosecutors said the maximum penalties are 10 years for commodities fraud, 20 years for wire fraud, and 20 years for money laundering.

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Google engineer accused in $1.2M Polymarket data trades

Written by Isaac FrancisPublished May. 31 2026Last Updated May. 31 2026

A Google software engineer has been charged in the United States after prosecutors accused him of using confidential company search data to make more than US$1.2 million on Polymarket.

The case has placed fresh attention on prediction markets, insider trading rules, and the use of private corporate information in event-based contracts.

Prosecutors said Michele Spagnuolo used internal Google data before it became public to trade contracts linked to Google’s 2025 Year in Search rankings.

The US Department of Justice said Spagnuolo traded through a Polymarket account called AlphaRaccoon and allegedly used information unavailable to other market participants.

Authorities said the contracts were tied to the most searched person and the top five searched people of 2025.

Prosecutors alleged that Spagnuolo accessed internal search rankings marked as Google Confidential before Google released the information publicly.

The complaint said he risked about US$2.75 million between 15 October 2025 and 4 December 2025 while the markets were still open.

"Corporate insiders cannot use confidential business information to turn a profit in our markets,"

Jay Clayton said.

Prosecutors said Spagnuolo’s access to private Google data gave him an unfair advantage in buying and selling Polymarket contracts.

The charges filed against him include commodities fraud, wire fraud, and money laundering.

The case also highlights how regulators are examining prediction markets that use crypto rails for settlement and trading activity.

The Commodity Futures Trading Commission filed a separate civil complaint seeking restitution, disgorgement, civil penalties, trading bans, registration bans, and a permanent injunction.

The CFTC’s action frames event contracts as markets where insider trading rules can apply when traders use nonpublic business information.

The complaint said the relevant Polymarket contracts traded in USDC.e, a bridged stablecoin designed to track the US dollar on a one-to-one basis.

Polymarket later replaced USDC.e as its main collateral token with Polymarket USD, also known as pUSD.

The complaint said pUSD is a Polygon ERC-20 token backed one-to-one by USDC.

Under the contract structure, winning shares paid US$1 while losing shares paid nothing.

"The Commission will not tolerate fraud, manipulation, or insider trading, regardless of the technology or platform that is used,"

Michael S. Selig said.

Investigators said they traced the AlphaRaccoon account to cryptocurrency wallets that funded Polymarket positions and received trading proceeds.

Spagnuolo is 36 years old, an Italian citizen, and lives in Switzerland, according to prosecutors.

The criminal charges carry maximum penalties of 10 years for commodities fraud, 20 years for wire fraud, and 20 years for money laundering.

The allegations remain another test for how US authorities treat prediction markets when confidential information shapes the outcome of tradable event contracts.