Google worker charged with using internal data to make $1.2m on bets

A Google engineer has been charged with insider trading after allegedly using confidential company data to place bets worth millions of dollars on the prediction platform Polymarket. Michele Spagnuolo, a 12-year veteran of Google specialising in information security, was arrested on Wednesday and brought before a federal judge in New York. Prosecutors in the Southern District of New York allege that between October and December 2024, Spagnuolo leveraged early access to internal Google marketing materials to place bets totalling $2.7 million on future search trends, generating profits of $1.2 million. The case raises fresh concerns about the misuse of corporate data in financial markets, particularly in emerging sectors such as blockchain-based prediction platforms.

Spagnuolo, an Italian citizen residing in Switzerland, allegedly conducted his trades under the pseudonym AlphaRaccoon using cryptocurrency across multiple accounts. Federal investigators, including the FBI, traced his activity back to a single account opened with an Italian ID, enabling them to link the dispersed transactions. Prosecutors allege that his bets were highly informed, including a wager that the singer D4dv would be the most searched person on Google in 2025—a prediction based on internal data showing rising search volumes before public release. Other notable bets reportedly included positions against public figures such as Bianca Censori and former President Donald Trump, reflecting a calculated strategy that exploited Google’s proprietary information before it became publicly available.

Google confirmed in a statement that the employee had been placed on administrative leave and was cooperating with law enforcement. A company spokeswoman emphasised that while the tool used to access the data was available to all employees, using such confidential information for personal financial gain constitutes a serious violation of internal policies. The tech giant has stated it is fully supporting the investigation. Polymarket, the blockchain-based prediction market where the trades were placed, also confirmed its collaboration with authorities, noting that its platform’s transparent, traceable ledger allows for precise monitoring of user activity. All transactions on Polymarket are conducted in cryptocurrency, which operates under blockchain’s immutable record system.

Spagnuolo was released on a $2.25 million bond and has not publicly commented on the charges. The case underscores growing regulatory scrutiny of prediction markets and the potential for insider abuse in digital finance. It also highlights the risks posed when employees with access to sensitive corporate data face conflicts of interest in personal financial activities. As blockchain-based platforms gain traction, authorities are increasingly vigilant about detecting and prosecuting misconduct that exploits early or non-public information. The outcome of this case may set a precedent for future enforcement actions in similar high-tech financial environments.