Google employee polymarket insider tradingSkip NavigationMarketsPre-MarketsU.S. MarketsCurrenciesPrediction MarketsCryptocurrencyFutures & CommoditiesBondsFunds & ETFsBusinessEconomyFinanceHealth & ScienceMediaReal EstateEnergyClimateTransportationInvestigationsIndustrialsRetailWealthSportsLifeSmall BusinessInvestingPersonal FinanceFintechFinancial AdvisorsOptions ActionETF StreetBuffett ArchiveEarningsTrader TalkTechCybersecurityAIEnterpriseInternetMediaMobileSocial MediaCNBC Disruptor 50Tech GuidePoliticsWhite HousePolicyDefenseCongressExpanding OpportunityVideoLatest VideoFull EpisodesLivestreamLive AudioLive TV ScheduleCNBC PodcastsCEO InterviewsCNBC DocumentariesDigital OriginalsWatchlistInvesting ClubTrust PortfolioAnalysisTrade AlertsMeeting VideosHomestretchJim's ColumnsEducationSubscribePROPro NewsJosh BrownMike SantoliCalls of the DayMy PortfolioLivestreamFull EpisodesStock ScreenerMarket ForecastOptions InvestingChart InvestingSubscribeLivestreamMenuMake ItselectUSAINTLLivestreamSearch quotes, news & videosLivestreamWatchlistSIGN INCreate free accountMarketsBusinessInvestingTechPoliticsVideoWatchlistInvesting ClubPROLivestreamMenuPrediction MarketsGoogle employee charged with $1M Polymarket insider trading bet on search termPublished Wed, May 27 20267:32 PM EDTUpdated 2 Hours AgoDavis Giangiulio@in/davis-giangiulio@GiangiulioDavisWATCH LIVEKey PointsFederal prosecutors charged a Google employee with fraud on Wednesday, alleging that he made $1.2 million from bets on Polymarket that used insider information.The employee, Michele Spagnuolo, has been charged with money laundering, commodities fraud and wire fraud, according to the complaint filed in the Southern District of New York.Google said it’s working with law enforcement and that Spagnuolo has been placed on leave.Signage at the Situation Room by Polymarket pop-up bar in Washington, DC, US, on Friday, March 20, 2026. Graeme Sloan | Bloomberg | Getty ImagesFederal prosecutors charged a Google employee with fraud on Wednesday, alleging that he made $1.2 million off of bets using insider information on Polymarket.Prosecutors claim that Michele Spagnuolo, a staff information security engineer at Google, used confidential information to place trades correctly betting that singer d4vd would be Google's most searched person in 2025. Spagnuolo has been charged with money laundering, commodities fraud and wire fraud. The complaint, filed in the Southern District of New York, was unsealed on Wednesday. ABC News first reported on the complaint. Spagnuolo was arrested Wednesday morning in New York, ABC reported. "Spagnuolo had access to Google's internal data systems, including a particular Google internal software tool that provided him access to confidential, nonpublic Year in Search data," the prosecutors said in their complaint. Some observers of the Polymarket platform flagged the user "AlphaRaccoon" back in December for suspicious trades on the most searched person contracts. The complaint Wednesday said that Spagnuolo was the person behind that account. "Google officially and publicly announced its Year in Search 2025 results on or about December 4, 2025. Soon after it did so, Spagnuolo's AlphaRaccoon account, profited approximately $1.2 million on his Google Year in Search 2025-related bets," the complaint said. Spagnuolo appeared before a federal magistrate judge Wednesday, He did not enter a plea and was released on a $2.25 million bond, ABC reported. "We're working with law enforcement on their investigation," Google said in a statement. "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," the company added."Polymarket worked closely with the U.S. Attorney's Office for the Southern District of New York and the CFTC, and is the only prediction platform to date whose cooperation has led to insider trading charges in the United States," a Polymarket spokesperson said in a statement. "We are committed to maintaining accurate, fair, and transparent markets as well as enforcing our rules and working with our regulators and law enforcement."Spagnuolo is also facing a civil case from the Commodity Futures Trading Commission, where he's charged with insider trading. The complaint detailed that Spagnuolo correctly predicted the outcomes of a slew of other search markets, including contracts like "Will Zohran Mamdani rank in the Top 5 most searched" and "Will Squid Game be the #1 searched TV show.""Spagnuolo misappropriated the material Confidential Information by knowingly or recklessly using it to trade the 2025 Year in Search List Contracts in breach of his duties of trust and confidentiality," the CFTC complaint alleged.The federal complaint marks the second high-profile insider trading case on Polymarket in just over a month. In April, then-active U.S. Army Special Forces master sergeant Gannon Ken Van Dyke was arrested over charges that he used classified information to bet on contracts related to the U.S. operation to capture Venezuela President Nicolás Maduro. Prosecutors said Van Dyke made more than $400,000 off his trades.Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.Subscribe to CNBC PROSubscribe to Investing ClubLicensing & ReprintsCNBC CouncilsSelect Personal FinanceJoin the CNBC PanelClosed CaptioningDigital ProductsNews ReleasesInternshipsCorrectionsAbout CNBCSite MapPodcastsCareersHelpContactNews TipsGot a confidential news tip? We want to hear from you.Get In TouchCNBC NewslettersSign up for free newsletters and get more CNBC delivered to your inboxSign Up NowGet this delivered to your inbox, and more info about our products and services.Advertise With UsPlease Contact UsAd ChoicesPrivacy PolicyYour Privacy ChoicesCA NoticeTerms of Service© 2026 Versant Media, LLC. All Rights Reserved. A Versant Media Company.
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Federal prosecutors charged a Google employee with fraud, alleging that the individual profited $1.2 million by utilizing insider information on Polymarket. The employee, identified as Michele Spagnuolo, a staff information security engineer at Google, is accused of using confidential data to place profitable bets. According to the complaint filed in the Southern District of New York, prosecutors allege that Spagnuolo exploited access to Google's internal data systems, including specific internal software tools, to obtain confidential, nonpublic Year in Search data. This information was leveraged to accurately predict outcomes on Polymarket contracts related to the 2025 Year in Search results, which Google had officially announced around December 4, 2025. The complaint details that Spagnuolo operated an account named AlphaRaccoon, which profited approximately $1.2 million from these related bets.

In addition to the federal charges, Spagnuolo is also facing a civil case from the Commodity Futures Trading Commission, where the charges stem from insider trading. The CFTC complaint further alleges that Spagnuolo misappropriated this confidential material by knowingly or recklessly using it to trade the 2025 Year in Search List Contracts, thereby breaching his duties of trust and confidentiality. The civil allegations extended to predictions on various other search markets, including contracts concerning the ranking of specific individuals and the popularity of television shows.

Polymarket stated that it collaborated closely with the U.S. Attorney's Office for the Southern District of New York and the CFTC, positioning the platform as the sole prediction platform historically that has facilitated insider trading charges within the United States. The complexity of the case is heightened by the fact that the employee allegedly accessed marketing material through tools available to all employees, making the use of such confidential information for betting a serious violation of company policies.

Google responded to the allegations by announcing that it was cooperating with law enforcement and placed the employee on leave, indicating the company's intent to take appropriate action. The incident is part of a broader pattern involving insider trading on prediction markets, as evidenced by a previous high-profile case where U.S. Army Special Forces master sergeant Gannon Ken Van Dyke was arrested for using classified information to profit from trades related to the operation to capture Venezuelan President Nicolás Maduro. This case underscores the regulatory scrutiny surrounding the use of sensitive information in financial markets and the necessity of robust internal controls against insider trading across corporate and platform environments.