Google Engineer Arrested Over Alleged Insider Trading on Polymarket

Google security engineer Michele Spagnuolo has been arrested and charged in the United States over an alleged insider trading scheme involving prediction market platform Polymarket. Federal prosecutors claim Spagnuolo used confidential Google search trend data to place profitable bets before the information became public.

According to a complaint unsealed by the U.S. Attorney’s Office for the Southern District of New York, Spagnuolo allegedly accessed an internal Google analytics tool that tracked the most-searched individuals on the platform for 2025. Authorities say he then used the nonpublic data to make trades on Polymarket, where users speculate on future events using cryptocurrency.

Investigators allege Spagnuolo transferred nearly $3.8 million in USDC to a Polymarket account operating under the username “AlphaRaccoon.” The account reportedly placed wagers tied to trending public figures, including rapper D4vd, shortly after confidential search data showed a spike in interest. Prosecutors claim these bets were placed before the broader public became aware of the trends.

The complaint also states that after generating more than $1.2 million in profits, the funds were moved through crypto swapping services and privacy tools in an attempt to hide their origin. Some of the assets were allegedly transferred to an Italian payment processor account opened using Spagnuolo’s identification documents.

U.S. officials have charged Spagnuolo with commodities fraud, wire fraud, and money laundering. The case marks another major investigation involving alleged insider trading on Polymarket, following a previous case tied to a U.S. Army soldier accused of using confidential information connected to a raid involving Venezuelan President Nicolas Maduro.

Google confirmed it is cooperating with law enforcement. A company spokesperson stated that while the internal tool was accessible to employees, using confidential company information for betting purposes violated corporate policy. The employee has reportedly been placed on leave pending further action.