Google employee accused of making over $1.2M on Polymarket through insider trading
An employee at Google, Michele Spagnuolo, is facing serious federal charges for allegedly engaging in insider trading on the prediction market service Polymarket. According to court documents released by the Justice Department, Spagnuolo used confidential company information to place bets on whether certain celebrities would be among Google’s top-trending searches of 2025. This information was not yet public and was only released later in Google’s annual Year in Search report.
One of Spagnuolo’s successful bets was on D4vd, a singer who gained national attention after a gruesome incident involving a 15-year-old’s body. Spagnuolo, using the username “AlphaRaccoon” on Polymarket, correctly predicted that D4vd would be among the most searched people, despite the odds initially being against it. Following the public release of the Year in Search data, Spagnuolo’s Polymarket account reportedly transferred millions of dollars in cryptocurrency to a crypto wallet.
The charges against Spagnuolo include commodities fraud, wire fraud, and money laundering. The Commodity Futures Trading Commission has also filed a civil suit against him on similar grounds. Spagnuolo, an Italian citizen residing in Switzerland, was arrested in New York and released on $2.25 million bond.
Google has placed Spagnuolo on leave and is cooperating with law enforcement in the investigation. Polymarket flagged the suspicious trading activity and worked closely with federal authorities in the case. This incident follows another insider trading case involving a U.S. special forces soldier who allegedly profited from betting on a raid before it was publicly announced.
The rise in popularity of prediction markets has raised concerns about insider trading, as demonstrated by these recent cases. Polymarket prohibits insider trading on its platform and actively monitors for misconduct, referring any illegal activities to authorities. The company emphasizes transparency in blockchain trading and is committed to maintaining fair and accurate markets.
As the investigation unfolds, it underscores the importance of ethical trading practices and the need for robust regulations to prevent insider trading in prediction markets. These incidents serve as a reminder of the risks associated with using confidential information for personal gain and the legal consequences that may follow.
