A Google employee allegedly used inside information to win $1.2 million on Polymarket  | The VergeSkip to main contentThe homepageThe VergeThe Verge logo.The VergeThe Verge logo.TechReviewsScienceEntertainmentAIPolicyNotificationsNotificationsHamburger Navigation ButtonThe homepageThe VergeThe Verge logo.NotificationsNotificationsHamburger Navigation ButtonNavigation DrawerThe VergeThe Verge logo.Login / Sign UpcloseCloseSearchTechExpandAmazonAppleFacebookGoogleMicrosoftSamsungBusinessSee all techReviewsExpandSmart Home ReviewsPhone ReviewsTablet ReviewsHeadphone ReviewsSee all reviewsScienceExpandSpaceEnergyEnvironmentHealthSee all scienceEntertainmentExpandTV ShowsMoviesAudioSee all entertainmentAIExpandOpenAIAnthropicSee all AIPolicyExpandAntitrustPoliticsLawSecuritySee all policyGadgetsExpandLaptopsPhonesTVsHeadphonesSpeakersWearablesSee all gadgetsVerge ShoppingExpandBuying GuidesDealsGift GuidesSee all shoppingGamingExpandXboxPlayStationNintendoSee all gamingStreamingExpandDisneyHBONetflixYouTubeCreatorsSee all streamingTransportationExpandElectric CarsAutonomous CarsRide-sharingScootersSee all transportationFeaturesVerge VideoExpandTikTokYouTubeInstagramPodcastsExpandDecoderThe VergecastVersion HistoryNewslettersArchivesStoreVerge Product UpdatesSubscribeFacebookThreadsInstagramYoutubeRSSThe VergeThe Verge logo.A Google employee allegedly used inside information to win $1.2 million on Polymarket NotificationsNotificationsComments DrawerNotificationsCommentsLoading commentsGetting the conversation ready...TechCloseTechPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All TechBusinessCloseBusinessPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All BusinessPolicyClosePolicyPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All PolicyA Google employee allegedly used inside information to win $1.2 million on Polymarket Prosecutors say that Michele Spagnuolo used Google’s internal info to place bets on the ‘Year in Search 2025’ results.Prosecutors say that Michele Spagnuolo used Google’s internal info to place bets on the ‘Year in Search 2025’ results.by Emma RothCloseEmma RothNews WriterPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Emma RothMay 27, 2026, 10:30 PM UTCLinkShareGiftImage: Cath Virginia / The Verge, Getty ImagesEmma RothCloseEmma RothPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Emma Roth is a news writer who covers the streaming wars, consumer tech, crypto, social media, and much more. Previously, she was a writer and editor at MUO.Federal prosecutors charged a Google employee with fraud after he allegedly made $1.2 million on Polymarket bets related to Search-related trends in 2025, as reported earlier by ABC News. In their now-unsealed complaint, prosecutors allege that Michele Spagnuolo “knew the outcome of these wagers before the trading public did because he had accessed Google’s confidential, commercially valuable internal data.” Spagnuolo was arrested in New York on Wednesday but released on a $2.25 million bond, ABC News reports. He is charged with commodities fraud, wire fraud, and money laundering.Spagnuolo made bets on Polymarket under the username AlphaRacoon, with his successful search-related wagers catching the attention of outlets like Forbes and users on social media last December. In one instance, Spagnuolo correctly guessed that a singer named D4vd would “be the #1 searched person on Google” in 2025, despite the “near-zero probability” assigned by Polymarket, according to the complaint.RelatedFake or real, the “inside traders” on Polymarket are great engagement baitOh, you think the government will regulate Kalshi and Polymarket? Wanna bet?At the same time, Spagnuolo allegedly bet that Pope Leo XIV and Kendrick Lamar would not appear on Google’s “Year in Search 2025” lists, which are difficult to predict because of how they’re calculated. Google says it ranked last year’s terms based on which ones saw the “highest increase in traffic” — not the highest number of searches — between January 1st, 2025 and November 25th, 2025. “By measuring the spike in interest rather than the total number of searches, we can identify the trends that were unique to 2025.”“Once he won, Spagnuolo then took deliberate steps to conceal his unlawful use of nonpublic information by attempting to obscure the source and ownership of his unlawful proceeds,” the complaint says. Last month, federal prosecutors charged US Army soldier Gannon Ken Van Dyke with fraud for allegedly making a $400,000 Polymarket bet on the capture of Venezuelan President Nicolás Maduro.Several states have taken steps to regulate prediction market platforms like Polymarket and Kalshi due to concerns about insider trading, but the Commodity Futures Trading Commission and President Donald Trump have pushed back on these decisions. The CFTC claims it has the “exclusive” authority over prediction markets.In a statement on X, Polymarket called itself “the enforcement leader,” saying its “market integrity infrastructure” flagged Spagnuolo’s activity. “Blockchain trading is transparent, traceable, and bad actors leave footprints,” the company writes, without noting whether the people putting their money down know that.”We’re working with law enforcement on their investigation,” Google spokesperson Jaclyn Vazquez says in a statement to The Verge. “The employee accessed our marketing material using a tool available to all employees, but using such confidential information to place bets is a serious breach of our policies. We’ve placed the employee on leave and will take the appropriate action.”Follow topics and authors from this story to see more like this in your personalized homepage feed and to receive email updates.Emma RothCloseEmma RothNews WriterPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Emma RothBusinessCloseBusinessPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All BusinessGoogleCloseGooglePosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All GooglePolicyClosePolicyPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All PolicyTechCloseTechPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All TechMost PopularMost PopularValve raises Steam Deck prices by more than $200Jony Ive’s Ferrari looks nothing like a FerrariGoogle Health is here, but a lot of people want their Fitbit app back insteadSony’s first RGB TV is a statement pieceUber president says AI spending is getting ‘harder to justify’The Verge DailyA free daily digest of the news that matters most.Email (required)Sign UpBy submitting your email, you agree to our Terms and Privacy Notice. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.Advertiser Content FromThis is the title for the native adMore in TechThe new Halide camera app launches with film looks and an upgraded photo editorFacebook launches a ‘Plus’ subscription that gives you extra featuresThe Verge’s 2026 college graduation gift guideYou can print, slice, and engrave using this desktop crafting machineMotorola says affiliate hijacking of Amazon app was ‘unintended’Sony is offering up to 50 percent off some of our favorite PS5 gamesThe new Halide camera app launches with film looks and an upgraded photo editorAndrew LiszewskiTwo hours agoFacebook launches a ‘Plus’ subscription that gives you extra featuresJay PetersTwo hours agoThe Verge’s 2026 college graduation gift guideSheena Vasani5:00 PM UTCYou can print, slice, and engrave using this desktop crafting machineAndrew Liszewski4:56 PM UTCMotorola says affiliate hijacking of Amazon app was ‘unintended’Dominic Preston4:42 PM UTCSony is offering up to 50 percent off some of our favorite PS5 gamesBrandon Widder4:41 PM UTCAdvertiser Content FromThis is the title for the native adTop Stories7:08 PM UTCRoids were all the rage at the Enhanced Games4:00 PM UTCSony’s first RGB TV is a statement piece5:32 PM UTCValve raises Steam Deck prices by more than $20012:00 PM UTCThe AI fight brewing inside The New York Times3:28 PM UTCHere’s how Google is responding to Fitbit users who don’t like the new Health app9 minutes agoSo, would you dope for $10 million?The VergeThe Verge logo.FacebookThreadsInstagramYoutubeRSSContactTip UsCommunity GuidelinesArchivesAboutEthics StatementHow We Rate and Review ProductsCookie SettingsTerms of UsePrivacy NoticeCookie PolicyLicensing FAQAccessibilityPlatform Status© 2026 Vox Media, LLC. All Rights ReservedNotifications DrawerThe VergeThe Verge logo.Sign in to see your notifications or create an account to join the conversation.Sign in

Federal prosecutors have charged a Google employee, Michele Spagnuolo, with fraud after he allegedly profited $1.2 million by placing bets on Polymarket related to search-related trends for the year 2025, utilizing confidential internal data from Google. Prosecutors allege that Spagnuolo gained an unfair advantage by accessing Google’s proprietary and commercially valuable internal data, allowing him to place wagers on the outcomes of these searches before the general public was aware of the results. Spagnuolo was arrested in New York and released on a bond, facing charges including commodities fraud, wire fraud, and money laundering.

Spagnuolo conducted successful bets on Polymarket under the username AlphaRacoon, with specific examples cited in the complaint indicating that he correctly predicted outcomes, such as guessing that a singer named D4vd would be the most searched person on Google in 2025, despite the low probability assigned by the prediction market platform. Further allegations suggest that Spagnuolo also bet on events that were difficult to predict, such as whether figures like Pope Leo XIV or Kendrick Lamar would appear on Google’s “Year in Search 2025” lists. The complaint further states that after winning these wagers, Spagnuolo took deliberate steps to conceal the origin and ownership of his illicit gains.

Google responded to the situation by stating that the employee accessed marketing material using a tool available to all employees, but using such confidential information for betting constituted a serious violation of company policies. As part of the response, Google informed that the employee was placed on leave and appropriate action was taken. The company spokesperson, Jaclyn Vazquez, indicated that the investigation is ongoing and that they are cooperating with law enforcement. Polymarket asserted its role in maintaining market integrity, claiming that its blockchain trading infrastructure flagged Spagnuolo’s activities, emphasizing that the system provides transparent and traceable records of transactions. While some state and regulatory bodies have sought to implement rules for prediction market platforms like Polymarket and Kalshi due to concerns over insider trading, the Commodity Futures Trading Commission has maintained its position regarding the exclusive authority over prediction markets.