Google Engineer Charged Over Alleged $1.2 Million Polymarket Insider Trading Scheme

A software engineer employed by Google has been charged by federal prosecutors in the United States over an alleged insider trading scheme that authorities say generated more than $1.2 million through cryptocurrency prediction market platform Polymarket.

According to prosecutors in the Southern District of New York, Michele Spagnuolo allegedly used confidential internal search trend data from Google’s annual “Year in Search” rankings to place highly profitable wagers under the online alias “AlphaRaccoon.”

Spagnuolo has been charged with commodities fraud, wire fraud, and money laundering.

Federal investigators allege the Google employee accessed restricted internal company systems containing unreleased search trend rankings before they became public and used that information to make strategic bets on Polymarket during late 2025.

The complaint states that Google’s “Year in Search” data was closely guarded within the company and accessible only to a limited group of employees.

Authorities claim Spagnuolo placed multiple wagers shortly after accessing confidential internal rankings, including bets involving predictions about the year’s most searched public figures.

Among the names mentioned in court filings were Kendrick Lamar, Pope Leo XIV, Bianca Censori, and Donald Trump.

Prosecutors allege the “AlphaRaccoon” account risked approximately $2.75 million across nearly 25 separate prediction bets linked to Google search trends.

When Google publicly released its Year in Search rankings in December 2025, investigators say the account secured profits totaling roughly $1.2 million.

Authorities further allege that cryptocurrency proceeds from the trades were later transferred through multiple wallets and token swaps in an effort to conceal the source of the funds.

According to court documents, federal investigators traced portions of the cryptocurrency activity to payment accounts allegedly linked to Spagnuolo through identification records and financial transaction data.

The criminal complaint was filed before US Magistrate Judge Sarah Netburn.

The case is being viewed as one of the first major insider trading prosecutions involving cryptocurrency-based prediction markets, an emerging sector where users place bets on real-world events using digital assets.

Federal prosecutors are attempting to apply traditional fraud and commodities trading laws to prediction market platforms that operate outside conventional financial exchanges.

The investigation also follows another recent US case involving alleged insider trading activity connected to Polymarket and classified military information.

At the time of publication, neither Google nor Polymarket had issued detailed public comments regarding the charges.

If convicted, Spagnuolo could face substantial prison time under federal fraud and money laundering statutes.