A 36-year-old Google security engineer has been charged with using confidential company data to make millions on prediction markets. Michele Spagnuolo netted $1.2 million by betting on who would be the most searched person of the year, correctly predicting D4vd's controversial rise.

This arrest is the second in the US for illegal activity on prediction markets, following a similar case involving an Army officer. Both tech giants and platforms like Polymarket are under scrutiny over their roles in such schemes.

Spagnuolo allegedly traded using internal Google data from October 2025 to December 2025, accessing marketing materials through a tool available to all employees. His trades were flagged by the suspicious odds he chose, leading Polymarket watchers to suspect his identity for some time.

The incident highlights the ongoing challenge of regulating prediction markets in an era where insider information can be easily misused. As regulatory bodies like the CFTC use AI to monitor these platforms, similar cases are likely to come under more scrutiny.