Michele Spagnuolo, a Google security engineer, was arrested on Wednesday for allegedly using internal Google data to place bets on Polymarket's prediction markets about the most-searched individuals of 2025. According to a complaint unsealed by the U.S. Attorney's Office for the Southern District of New York, Spagnuolo used an internal Google tool to access material nonpublic information about trending search terms. The account, under the username 'AlphaRaccoon,' transferred approximately $3.8 million in USDC to Polymarket and bet on contracts, including one that rapper D4vd would be a top search. Spagnuolo allegedly accessed the tool hours before placing a bet on D4vd. He profited over $1.2 million and attempted to conceal the proceeds by moving funds through a swapping service and privacy tool, eventually to an Italian payment processor account opened with his ID. The Commodity Futures Trading Commission (CFTC) also filed a civil case seeking penalties. Spagnuolo faces charges of commodities fraud, wire fraud, and money laundering. This is the second major insider trading arrest on Polymarket, following a U.S. Army soldier's case. Google stated that the employee accessed internal tools available to all but violated policies, and has placed him on leave.

Key facts

• Google engineer arrested for insider trading on Polymarket prediction markets.
• Used internal Google data to bet on most-searched individuals of 2025.
• Profited over $1.2 million; moved funds via swapping service and privacy tool.
• Charged with commodities fraud, wire fraud, and money laundering.
• Second major insider trading case on Polymarket; CFTC also filed civil charges.