The U.S. Department of Justice has charged Google software engineer Michele Spagnuolo with insider trading, accusing him of making $1.2 million on Polymarket using confidential business information.
Spagnuolo, who traded under the name “AlphaRaccoon,” used internal data about Google’s 2025 Year in Search campaign to bet on popular searches, according to a complaint from the U.S. Attorney's Office for the Southern District of New York.
Prediction markets like Polymarket and Kalshi are supposed to keep out insider trading due to its illegality, but users still find ways to exploit information for profit. The Justice Department has recently charged another soldier, this time for betting $400,000 on the capture of Venezuelan president Nicolás Maduro using his military insider knowledge.
Polymarket’s spokesperson stated that their cooperation with law enforcement had led to these charges and highlighted the transparency provided by blockchain technology. However, Google has placed Spagnuolo on leave pending an investigation into whether he accessed marketing materials improperly.
The incident raises questions about both employee integrity in tech companies and the effectiveness of prediction markets as a transparent platform for financial speculation.
