Google Engineer Arrested After Allegedly Turning Internal Data Into $1.2m Betting Windfall
A long-serving Google engineer is facing federal charges after prosecutors allege he leveraged confidential company information to secure over $1.2 million in profits from bets placed on the cryptocurrency prediction platform Polymarket. The case highlights growing concerns about insider trading risks in the rapidly expanding world of decentralized prediction markets.
Michele Spagnuolo, a 36-year-old Italian national based in Switzerland, was arrested on Wednesday, May 27, 2026, and appeared before a federal judge in New York’s Southern District. The U.S. Attorney’s Office unsealed a complaint charging him with commodities fraud, wire fraud, and money laundering, accusing him of misappropriating non-public Google data to place high-value wagers.
According to court filings, Spagnuolo used his access as a Staff Information Security Engineer to view internal Google marketing data through employee tools. Prosecutors claim he used this information to predict outcomes related to Google’s “Year in Search 2025” report before it was publicly released. The data reportedly revealed which individuals and topics were trending internally, giving him an unfair advantage on Polymarket contracts tied to those results.
The scheme allegedly ran from October to December 2025. During that period, Spagnuolo placed approximately $2.7 million in bets across 25 wagers linked to Google’s annual search rankings. One of his most profitable trades involved betting that indie pop musician d4vd would be named the most-searched person of 2025. Google officially released that result on December 4, 2025, confirming his prediction and triggering a payout.
Spagnuolo operated under the Polymarket username “AlphaRaccoon”. Investigators linked multiple cryptocurrency accounts to him using identity records, including an Italian ID used during registration. Authorities say the blockchain’s transparency allowed them to trace the activity back to him.
Google confirmed the employee has been placed on leave and stated it is cooperating with law enforcement. A company spokesperson noted that while the internal tool was accessible to staff, using confidential information for personal financial gain violates company policy. Polymarket also said it worked with investigators, emphasizing that all transactions on its platform are traceable.
“This case reinforces a decades-old message: corporate insiders cannot use confidential business information to turn a profit in our markets,” said U.S. Attorney Jay Clayton. If convicted on all counts, Spagnuolo faces up to 50 years in prison. He was released on a $2.25 million bond and has not publicly responded to the allegations.
The arrest marks the second insider trading case brought by the Southern District of New York involving Polymarket in 2026. Legal experts say the case could set a precedent for how U.S. authorities treat fraud on decentralized platforms, where users often assume anonymity protects them from scrutiny.
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