Google Employee Charged with $1.2M Insider Trading After Betting Big on Polymarket

The U.S. Justice Department recently brought charges against a Google software engineer named Michele Spagnuolo, alleging he made $1.2 million from insider trading on the prediction platform Polymarket. This case highlights the risks and consequences of leaking confidential business information.

Spagnuolo, who used the username “AlphaRaccoon” on Polymarket, reportedly gained access to Google's internal data about its 2025 Year in Search marketing campaign through his role as an employee. He leveraged this information to place bets and reportedly made over $1.2 million from these trades.

According to Jay Clayton, the United States Attorney for the Southern District of New York, Spagnuolo violated his duties by using confidential business information to trade on Polymarket. “Insider trading compromises the integrity of our markets and is a greed-driven conduct that we will investigate and prosecute,” said Clayton.

This case isn't an isolated incident. The Justice Department has already charged a U.S. Army soldier for allegedly using insider knowledge about a military operation to make $400,000 on Polymarket. The platform itself worked closely with law enforcement in these cases and emphasized their commitment to maintaining fair and transparent markets.

Spagnuolo's access to Google’s internal data was through a tool available to all employees, but the company views using such confidential information for betting as a serious breach of policy. In response, Google placed Spagnuolo on leave and will take appropriate action based on the investigation results.