Google software engineer Michele Spagnuolo has been charged with insider trading by US prosecutors. The allegations state that he used Google's confidential information to generate over $1.2 million in profits on the prediction market platform Polymarket.
Details of the Charges
According to the complaint unsealed in Manhattan federal court, Spagnuolo traded under the alias "AlphaRaccoon." Between October and December 2025, he allegedly accessed Google's internal data systems marked "Google Confidential" and placed bets on Polymarket tied to Google's business outcomes. Prosecutors assert that he risked nearly $2.75 million and profited once the information became public.
Spagnuolo, who resides in Switzerland, faces charges of commodities fraud, wire fraud, and money laundering. He was presented before US Magistrate Judge Sarah Netburn in the Southern District of New York.
Statements from Officials
US Attorney Jay Clayton stated, "Today's charges reinforce a decades-old message: corporate insiders cannot use confidential business information to turn a profit in our markets. As alleged, Spagnuolo violated the duties he owed to his employer and used Google's confidential business information to make more than $1.2 million in trading profits on Polymarket. Insider trading compromises the integrity of our markets, and the American people want this greed-driven conduct investigated and prosecuted."
FBI Assistant Director James C. Barnacle Jr. added, "Spagnuolo allegedly abused his elevated access to confidential trends to place bets with nonpublic information and receive more than one million dollars in unlawful profits."
Misuse of Confidential Data
Court filings also state that Spagnuolo had access to Google's internal software tools that displayed sensitive data under a "Google Confidential" banner. Despite certifying his understanding of Google's confidentiality and ethics policies, he allegedly misused this access to inform his trades.
This case highlights the ongoing efforts by US authorities to crack down on insider trading, particularly involving emerging platforms like Polymarket. The charges serve as a warning to corporate insiders that misusing confidential information for personal gain will lead to serious legal consequences.
