Google Engineer Accused in $1.2M Polymarket Betting Scheme

US federal prosecutors have charged a Google employee with insider trading after he allegedly used confidential company information to make more than $1.2 million through bets placed on the prediction market platform Polymarket. The case has quickly gained international attention and raised fresh concerns about insider trading in the rapidly growing prediction market industry.

According to court documents, the accused employee has been identified as Michele Spagnuolo, a 36-year-old Google software engineer and Italian citizen living in Switzerland. Prosecutors claim he secretly accessed internal Google search trend data before it became public and used that information to place highly profitable bets on Polymarket under the online name “AlphaRaccoon.”

Investigators say the engineer focused on Google’s “Year in Search 2025” results, which reveal the most searched public figures and topics of the year. Authorities allege that Spagnuolo already knew the upcoming search rankings because of his access to Google’s internal systems. He then allegedly placed large wagers on Polymarket markets connected to those results before the public announcement was made.

One of the biggest examples mentioned in the complaint involved singer d4vd. Prosecutors say the engineer placed a major bet predicting that d4vd would become one of Google’s most searched people of 2025 at a time when most traders on Polymarket considered that outcome extremely unlikely. After Google officially released its search data, the bets reportedly generated massive profits for the accused.

Federal authorities stated that the accused made around 16 transactions on Polymarket between October and December 2025 and wagered nearly $2.7 million in total. Prosecutors claim the profits were generated using nonpublic company information, which they describe as a serious form of financial fraud. He now faces charges including commodities fraud, wire fraud, and money laundering.

Google has confirmed that the employee has been placed on leave while the investigation continues. The company also stated that it is cooperating with law enforcement authorities. Officials said the accused employee violated company policies by accessing internal tools and allegedly using confidential data for personal financial gain.

The case is being closely watched because it highlights growing legal and ethical concerns around prediction market platforms such as. These platforms allow users to place money on the outcome of future events ranging from politics and entertainment to business developments and global conflicts. Critics argue that prediction markets can become vulnerable to insider information if proper oversight is not maintained.

This is reportedly the second major insider trading investigation linked to Polymarket this year. Earlier in 2026, US authorities charged a special forces soldier for allegedly using classified information to profit from bets connected to military operations involving Venezuela. The latest Google case is expected to increase pressure on regulators to introduce stricter monitoring of prediction markets and financial activity connected to insider information.

Legal experts say the investigation could become an important test case for how insider trading laws apply to modern prediction markets and blockchain-based betting platforms. Authorities believe these digital platforms are becoming increasingly influential and may require stronger regulation as their popularity grows worldwide.