Google Engineer Charged with Insider Trading on Prediction Market
Google employee lands in trouble over d4vd, Mamdani bets
Thestreet
Image: Thestreet
Michele Spagnuolo, a Google software engineer, faces charges from the U.S. Department of Justice for allegedly profiting over $1.2 million through insider trading on Polymarket. The charges include commodities fraud, wire fraud, and money laundering, linked to non-public information accessed during his employment.
- 01Michele Spagnuolo allegedly used insider information to place profitable bets on Polymarket, resulting in over $1.2 million in profits.
- 02He created a Polymarket account named 'AlphaRaccoon' and placed $2.75 million in trades related to Google's confidential information.
- 03The Commodity Futures Trading Commission (CFTC) has also charged Spagnuolo for insider trading, seeking penalties and a permanent injunction.
- 04Spagnuolo correctly predicted outcomes on 23 contracts related to Google's 2025 Year in Search List.
- 05Google has placed Spagnuolo on leave and is cooperating with law enforcement in the investigation.
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Michele Spagnuolo, a software engineer at Google, has been charged by the U.S. Department of Justice with commodities fraud, wire fraud, and money laundering for allegedly profiting more than $1.2 million through insider trading on the prediction market Polymarket. The charges stem from Spagnuolo's access to confidential information at Google, which he reportedly used to place a series of bets on upcoming Google-related events. From mid-October to early December 2025, he placed trades totaling $2.75 million under the account name 'AlphaRaccoon', resulting in significant profits once the information became public. The Commodity Futures Trading Commission (CFTC) has also filed charges against him, seeking restitution and penalties. Google has responded by placing Spagnuolo on leave and is cooperating with the investigation. The incident raises concerns about insider trading practices within prediction markets, especially as the CFTC seeks to regulate platforms like Polymarket.
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The case highlights potential risks of insider trading in prediction markets, which could lead to stricter regulations.
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