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Google engineer arrested in insider trading case
A Google software engineer has been charged with using confidential company data to place profitable bets on the blockchain-based prediction platform Polymarket, U.S. prosecutors announced Wednesday.
Allegations and arrest
Michele Spagnuolo, an Italian citizen residing in Switzerland, was taken into custody in New York after federal authorities accused him of exploiting early access to internal Google information. The U.S. Attorney's Office for the Southern District of New York filed insider trading charges against him.
Spagnuolo allegedly converted privileged data into $1.2 million in winnings on Polymarket, a platform that accepts only cryptocurrency for wagers.
How the scheme unfolded
According to court documents, Spagnuolo accessed marketing materials through an internal Google tool available to all employees. Prosecutors claim he then used this non-public information to place bets between October and December 2025, turning $2.7 million in wagers into over $1 million in profits.
The most lucrative prediction involved correctly forecasting Google's most-searched person of 2025. Spagnuolo allegedly bet against high-profile figures like Bianca Censori and former U.S. President Donald Trump, while wagering on musician D4vd-an outcome Polymarket had initially rated as nearly impossible.
Prosecutors stated that Spagnuolo knew D4vd would top Google's search rankings before the data was made public, as he had early access to the company's internal metrics.
Company and platform responses
A Google spokesperson confirmed the company is cooperating with law enforcement and has placed Spagnuolo on administrative leave. "While the tool he used is accessible to all employees, leveraging confidential information for personal gain violates our policies," the spokesperson said.
Polymarket, which collaborated with authorities during the investigation, emphasized the transparency of blockchain transactions. "Blockchain trading leaves a permanent, traceable record, making it difficult for bad actors to evade detection," a platform representative said.
Legal proceedings and background
Spagnuolo, who operated under the Polymarket username AlphaRaccoon, was released on a $2.25 million bond following his court appearance. The FBI linked his betting accounts to his identity after discovering one registered with an Italian ID card.
Online profiles indicate Spagnuolo worked at Google for over 12 years, specializing in information security. He began using Polymarket in 2024, according to prosecutors.
Spagnuolo has not commented publicly on the charges. D4vd, the musician whose search popularity he allegedly exploited, is currently incarcerated on unrelated murder charges.
