Points of Focus

• Federal prosecutors accused a Google engineer of using confidential search trend data to make more than $1.2 million on Polymarket.
• Authorities said the employee placed nearly $2.75 million in prediction market bets tied to Google’s unreleased “Year in Search 2025” results.
• The case adds pressure on prediction markets as regulators and lawmakers increase scrutiny around insider trading risks.

US authorities have charged a Google software engineer for allegedly using confidential company data to place profitable bets on Polymarket, according to criminal and civil complaints unsealed in New York on Wednesday.

Federal prosecutors in New York unsealed charges against Michele Spagnuolo on Wednesday, accusing the Google employee of using internal “Year in Search 2025” data to generate more than $1.2 million in profits through a Polymarket account known as “AlphaRaccoon.”

According to the complaint filed by the US Attorney’s Office for the Southern District of New York, Spagnuolo allegedly placed $2.75 million worth of bets between October and December 2025 on contracts linked to Google search rankings before the information became public.

“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.”…

— US Attorney SDNY (@SDNYnews) May 27, 2026

Google search data allegedly used in Polymarket bets

Prosecutors said Spagnuolo had access to internal Google tools containing nonpublic search trend information and used that access to place bets that prosecutors said repeatedly matched unreleased Google search rankings.

One of the bets highlighted in court filings involved musician D4vd, whom Spagnuolo allegedly backed to become Google’s most-searched person of 2025 despite Polymarket traders assigning low odds to that outcome at the time.

Authorities said the employee accessed internal Google data shortly before the trades were placed. Court filings also alleged that funds connected to the AlphaRaccoon account later moved through crypto swapping services and privacy tools before some proceeds reached an Italian payment account tied to Spagnuolo’s identification documents.

The Department of Justice charged Spagnuolo with commodities fraud, wire fraud, and money laundering. The Commodity Futures Trading Commission (CFTC) filed a parallel civil complaint seeking restitution, financial penalties, and trading bans.

Google said the employee has been placed on leave and that using confidential information for betting activity would violate company policy.

Prediction market insider trading faces wider scrutiny

US regulators and lawmakers are increasing scrutiny of prediction market platforms tied to political, financial, and event-driven contracts.

Polymarket said it cooperated with investigators and described itself as the only prediction platform whose assistance has led to insider trading charges in the United States.

.@CFTC Charges Google Employee with Insider Trading in Search Result-Related Event Contracts: https://t.co/BmBrUNhSlK

— CFTC (@CFTC) May 28, 2026

The allegations also follow the April arrest of US Army Special Forces soldier Gannon Ken Van Dyke, whom prosecutors accused of using classified information tied to the US operation targeting Venezuelan President Nicolas Maduro to place Polymarket bets that allegedly generated more than $400,000 in profits.

The charges add to growing regulatory concerns over whether blockchain-based prediction markets have adequate controls to detect trading tied to confidential corporate or government information, as prediction markets attract larger trading volumes and broader participation beyond crypto-focused users.