US prosecutors charge Google engineer Michele Spagnuolo with using inside information to make ~$1.2M via Polymarket bets on Google's Year in Search 2025 results

Michele Spagnuolo allegedly placed bets on what users were searching for. — In this Dec. 19, 2023, file photo …

ABC News 2026-05-28

Context & Ripple Effects

The alleged Year in Search betting windfall had already drawn attention after a Polymarket account made an unusually accurate series of predictions on the rankings. Google later said related betting content that surfaced in Google News had appeared there in error.

This charge gives that episode an alleged internal-source explanation and joins a broader run of cases in which former or current Google personnel have faced accusations involving confidential company information.

First-order effects

Spagnuolo faces a federal criminal case over the alleged use of nonpublic Google search-ranking information; the allegations remain to be proven in court.
Google must assess who could access unreleased Year in Search data and whether its access controls, monitoring, and employee trading policies adequately protect it.

Second-order effects

Polymarket and comparable prediction-market operators face sharper scrutiny over whether markets tied to corporate or platform-held information can be exploited before public release.
Companies that publish annual rankings, product metrics, or other scheduled data may tighten data segmentation and restrict employee participation in markets whose outcomes depend on internal information.

Third-order effects

If cases like this recur, prediction markets could be treated less as neutral forecasting venues and more as markets requiring surveillance against information asymmetry, similar to other markets exposed to insider trading risks.
The episode reinforces that internal analytics—not only technical designs or source code—are commercially sensitive assets, expanding the scope of corporate information-governance programs.

The trend: Prediction markets are moving closer to mainstream information ecosystems, increasing pressure on platforms and data-holding companies to manage insider-information and market-integrity risks.

Discussion

@polymarket @polymarket on x
Proud to announce Polymarket's market integrity infrastructure flagged another trader who was arrested this morning in New York for insider trading. With 2 out of 2 arrests in this industry resulting from our criminal referrals, Polymarket has emerged as the enforcement leader.
@sdnynews @sdnynews on x
“A Google employee allegedly used confidential information to make more than $1.2 million through insider trading on a prediction market,” said U.S. Attorney Jay Clayton. “Corporate insiders who misuse confidential information to trade for personal gain will be prosecuted.”
@herecomeskumar Neal Kumar on x
Say it with me now — it's not anonymous
@amandalfischer Amanda Fischer on x
Once again I am asking: where is Polymarket's geoblocking and where is the CFTC's enforcement of the 2022 consent order?
@avi_eisen Avraham Eisenberg on x
The complaint is pretty funny, it says he made another 1.3M in profitable trades on other markets with no insider info Pure love of the game [image]
@bobbyallyn Bobby Allyn on x
is the market integrity infrastructure just twitter? [image]
@bobbyallyn Bobby Allyn on x
Like with the Maduro-related Polymarket insider trading case, Google engineer Michele Spagnuolo has been charged both criminally in SDNY, and faces a federal civil lawsuit from the CFTC [image]
@vydamo_ @vydamo_ on x
They are really establishing a dual class system where rampant insider trading from trump admin is allowed but enforcement of others is aggressive to create a facade that they care about it Honestly been hoping trump admin do something like this in crypto and send a couple 18
@avi_eisen Avraham Eisenberg on x
Some of the other profitable trades this user made [image]
@chairmanselig Mike Selig on x
As I've stated repeatedly, if you commit fraud, insider trade, or manipulate markets, you will face the full force of the law. Today, the @CFTC took parallel action with @SDNYnews to charge an individual with insider trading involving event contracts.  Our Division of
@carnage4life Dare Obasanjo on bluesky
A Google engineer made $1.2M on Polymarket betting on who would be announced as the most searched person of the year was just arrested for insider trading. — People need to realize only government officials get away with that blatant a degree of insider trading.
@aaronschaffer.com Aaron Schaffer on bluesky
Wow — DOJ alleging that Google security engineer @miki.it is “AlphaRaccoon,” the Polymarket user who made more than $1 million on Polymarket trades on Google search trends. Good scoop by Aaron Katersky and @kfaulders.bsky.social abcnews.com/US/google-em...
@paleofuture Matt Novak on bluesky
I was kind of surprised DOJ would go after someone for making money on Polymarket with insider information and then I got to the part where it's an Italian living in Switzerland. — www.justice.gov/usao-sdny/pr...
@miasato Mia Sato on bluesky
Woah: Feds arrested a Google employee today, who they say made $1M+ betting on Google-related Polymarket events. Here are a few of the markets the account allegedly belonging to the employee wagered on. — abcnews.com/US/google-em... [image]
r/LegalNews r on reddit
Google employee charged with using inside information to make $1 million on Polymarket
r/inthenews r on reddit
Google employee charged with using inside information to make $1 million on Polymarket
r/InterstellarKinetics r on reddit
BREAKING: A Google Security Engineer, Who Had Access To The Company's Confidential Year In Search Data, Allegedly Used It To Place Bets On Polymarket Under The Name …
@pons_eth Pons Asinorum on x
I thought insider trading was a “feature” of prediction markets?
@marionawfal Mario Nawfal on x
🚨🇺🇸 Google engineer charged with using insider company data to make $1.2 million betting on Polymarket. Operating under the username “AlphaRaccoon,” Michele Spagnuolo, 36, allegedly used nonpublic Google search trend data, including the Year in Search 2025 list, to win roughly [i…
@dustingouker Dustin Gouker on x
“We have caught more people doing actual crimes” is maybe not a great flex tbh
@j0xnah Jonah on x
a Google software engineer used internal search data to make $1M betting on various Google search markets last year he was arrested this morning in NY. flagged by @Polymarket's own market integrity infrastructure. 2 for 2 on insider trading referrals from Polymarket this year🚨 [i…
r/NPR r on reddit
DOJ charges Google staffer over Polymarket trades netting $1.2 million
r/d4vdiots r on reddit
Google information security engineer charged with using pollymarket to make money of bets. D4vd was one of them
r/technology r on reddit
Google information security engineer charged with using inside information to make $1M on Polymarket
ABC News ABC News on linkedin
A Google employee fraudulently made more than $1 million by using inside information to place Polymarket bets on what users were searching for on Google …
WLTX-TV Katrina Morgan on x
Google engineer accused of secretly using search data to make $1.2M on Polymarket
@arrington @arrington on x
Going to be really interesting to watch this case and make it fit within insider trading laws. https://www.zerohedge.com/...
@knibbs Kate Knibbs on bluesky
Another arrest over Polymarket trades! This time, a Google engineer who allegedly used confidential info to turn a major profit: www.wired.com/story/google...
@brbarrett Brian Barrett on bluesky
A Google security engineer allegedly made over $1 million on a Polymarket trade about the most-searched person in 2025.
@peoplesfabric Steve Held on bluesky
bet there's a lot of worried people out there rn
Robin Andrews Robin Andrews on linkedin
Jay Clayton's team isn't finished! Another criminal predictive markets insider trading case, charging: — ✅ Commodities fraud — ✅ Wire fraud …
@andrewmceo @andrewmceo on bluesky
Remember, only members of Congress and the Executive Branch get away with insider trading.

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