A Google expert was tainted by insider trading after making $1.2M on Polymarket

The US Department of Justice has indicted Google software developer Michele Spagnuolo insider tradingstating that the employee made a $1.2 million transaction on Polymarket based on confidential business information.

Spagnuolo, who used the username “AlphaRaccoon” on Polymarket, has worked at Google for more than 12 years, according to LinkedIn information.

“As he alleges, Spagnuolo breached his duties to his employer and used Google’s business secrets to make more than $1.2 million in profit by trading on Polymarket,” Jay Clayton, US Attorney for the Southern District of New York, said in a press release. “Insider trading undermines the integrity of our markets, and the American people want this greedy behavior investigated and prosecuted.”

Prediction markets like Polymarket, Kalshi, and others allow users to bet on anything. Insider trading is not allowed on these platforms because it is illegal, but some users still make mistakes. Department of Justice soon committed a crime against a US military officer for using his inside information on the US military to capture Venezuelan President Nicolás Maduro to make $400,000 on Polymarket.

According to the complaint, Spagnuolo risked more than $2.7 million in bets related to Google 2025 Year of the Huntan advertising campaign in which Google reveals the world’s most popular searches of the year. Spagnuolo claims to have found a secret, inside Google search of the most searched celebrities to inform his betting.

“Polymarket worked closely with the US Attorney’s Office for the Southern District of New York and the CFTC, and is the only predictor to date that their cooperation has resulted in a transaction in the United States,” a Polymarket spokesperson told TechCrunch. “Blockchain transactions are transparent, traceable, and wrongdoers are left out of the loop. We are committed to maintaining fair, fair, and transparent markets as well as complying with our rules and working with regulators and law enforcement.”

A Google spokesperson told TechCrunch that the company is working with the police in its investigation.

“The employee found our ads using a tool that is available to all employees, but using such confidential data for betting is a violation of our policy,” Google said in an email, “We have placed the employee on leave and will take appropriate action.”