Google Security Engineer Charged in $1.2 Million Polymarket Insider Trading Scheme

A Google employee allegedly used confidential search trend data to place winning bets on the Polymarket prediction platform.

Google Employee Faces Insider Trading Charges

U.S. authorities have charged a Google security engineer with insider trading after investigators accused him of using confidential company information to make over $1.2 million on Polymarket.

The accused, Michele Spagnuolo, is a 36-year-old Italian citizen living in Switzerland. He reportedly worked at Google since 2014 and had access to internal company systems.

Prosecutors claim he used sensitive “Year in Search” data before Google released it publicly.

Confidential Google Data Used for Betting

According to court documents, Spagnuolo accessed an internal Google tool that contained upcoming trending search rankings. The platform reportedly displayed a visible “Google Confidential” warning.

Investigators allege that he used this information to place bets on Polymarket through an account named “AlphaRaccoon.”

The bets focused on whether certain people or topics would appear in Google’s annual trending searches.

Authorities said the account showed unusually accurate predictions across nearly 25 different outcomes.

Polymarket Account Generated Massive Profits

Prosecutors said the account risked roughly $2.75 million in cryptocurrency trades.

After Google officially released its Year in Search results in December 2025, the Polymarket account reportedly earned around $1.2 million in profits.

Investigators also stated that millions of USDC.e stablecoins moved through several cryptocurrency wallets connected to the account.

Later, the funds allegedly passed through crypto-swapping services designed to hide blockchain transaction trails.

FBI Investigation Linked the Account

Online users on Discord and X reportedly began questioning the account’s perfect prediction record. Some users suspected the account belonged to a Google insider.

Shortly after the speculation appeared online, the “AlphaRaccoon” username disappeared from the account.

The FBI later connected the account to Spagnuolo through payment records and identification documents.

CFTC Files Separate Civil Complaint

Alongside the criminal case, the Commodity Futures Trading Commission (CFTC) filed a separate civil complaint.

The agency is seeking financial penalties, trading bans, and restitution.

U.S. Attorney Jay Clayton said the case highlights the risks of employees abusing confidential business information for personal profit.

CFTC officials also warned that trusted employees must protect sensitive corporate data.

Insider Threats Remain a Major Risk

The case highlights growing concerns around insider threats and cryptocurrency-based prediction markets.

Security experts warn that insider risk remains one of the hardest cybersecurity challenges for large organizations.

Even companies with advanced security controls can face serious exposure when employees misuse privileged access.

Additionally, the case may increase pressure on organizations to strengthen internal monitoring, data governance, and access management policies.

If convicted, Spagnuolo could face significant prison time on fraud and money laundering charges.