A long-time Google software engineer, Michele Spagnuolo, has been charged with insider trading after allegedly profiting over $1.2 million on the prediction market Polymarket. According to the U.S. Department of Justice, Spagnuolo used non-public, internal Google data about 2025 Year in Search trends—specifically, the most-searched celebrities—to place informed wagers. He reportedly accessed the data through a company tool available to employees, violating Google’s policies and federal securities laws. The case marks one of the first insider trading prosecutions tied to a decentralized prediction platform.

Spagnuolo, who used the pseudonym 'AlphaRaccoon' on Polymarket, is accused of risking more than $2.7 million on bets related to Google’s annual marketing campaign. The Southern District of New York alleges he exploited confidential information for personal gain, undermining market fairness. Google confirmed it placed the employee on leave and is cooperating with law enforcement. The company emphasized that while the tool used was accessible to staff, using such data for financial gain is strictly prohibited.

Polymarket, which operates on blockchain and allows users to bet on real-world events, said it worked closely with regulators and the Commodity Futures Trading Commission (CFTC) to trace the suspicious activity. The platform touts its transparency, noting that blockchain records leave clear footprints. This case follows another recent insider trading charge involving a U.S. Army soldier who allegedly used military intelligence to profit on Polymarket. As prediction markets grow, regulators are increasingly focused on preventing abuse of non-public information.