A Google security engineer has been charged by U.S. authorities for allegedly using confidential company information to earn more than $1.2 million through bets on the prediction market platform Polymarket. The case has attracted significant attention because it involves the use of internal Google data that was not available to the public. Prosecutors believe the information gave the engineer an unfair advantage over other users. The charges were announced by the U.S. Department of Justice.
According to investigators, the accused is Michele Spagnuolo, a 36-year-old Italian citizen who worked for Google while living in Switzerland. Authorities claim he accessed sensitive company information related to Google’s search trends and used it to place highly profitable bets. The alleged activity took place through a Polymarket account operating under the name “AlphaRaccoon.” Prosecutors say the profits from these bets totaled approximately $1.2 million.
The investigation focuses on Google’s internal “Year in Search” data, which shows the people, events, and topics that receive the highest search interest during the year. This information is usually kept confidential until Google officially publishes its annual report. Prosecutors allege that Spagnuolo accessed this data before its public release. They claim he then used the information to predict outcomes on Polymarket with a much higher chance of success.
One of the most notable allegations involves musician and internet personality D4vd. Authorities say internal Google data showed that D4vd was becoming one of the most searched people of the year. At the same time, public prediction markets did not expect this outcome and favored other candidates. Prosecutors claim Spagnuolo used his knowledge of the confidential data to place a successful bet before the information became public.
Investigators also allege that he placed other profitable wagers involving search rankings for additional public figures. According to the complaint, the internal data provided a clear advantage because it revealed trends that ordinary users could not see. This allowed predictions to be made with greater confidence than those based only on public information. Authorities argue that such use of confidential information was unfair and deceptive.
As a result of the investigation, federal prosecutors have charged Spagnuolo with commodities fraud, wire fraud, and money laundering. They argue that using non-public company information for personal financial gain is similar to insider trading. Although insider trading is commonly linked to stock markets, prosecutors believe the same principle can apply to prediction markets. The case could therefore have wider implications for the growing prediction market industry.
Google has stated that using confidential company information for personal betting or profit is a violation of company policies. The company said it is cooperating with law enforcement authorities during the investigation. Google also confirmed that Spagnuolo has been placed on leave while the legal process moves forward. The company has not commented further on the specific allegations.
Polymarket also cooperated with investigators and provided assistance during the case. Legal experts believe the matter could become an important test of how insider trading laws apply to prediction markets. Regulators are increasingly paying attention to whether confidential information is being used to gain unfair advantages in these platforms. It is important to note that the allegations have not yet been proven in court, and the case remains ongoing.
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