Prosecutors Charge Google Employee in $1.2 Million Polymarket Insider Trading Case
Updated
Updated · CNBC · May 27
Prosecutors Charge Google Employee in $1.2 Million Polymarket Insider Trading Case
10 articles · Updated · CNBC · May 27
Federal prosecutors say Michele Spagnuolo used confidential Google Year in Search data to win about $1.2 million on Polymarket bets tied to the company’s 2025 most-searched person.
The Southern District of New York complaint says the Google staff security engineer accessed a tool with nonpublic search results and traded through the “AlphaRaccoon” account flagged in December for suspicious activity.
Spagnuolo was arrested in New York on Wednesday, charged with commodities fraud, wire fraud and money laundering, then released after appearing before a magistrate judge on a $2.25 million bond.
Google said it is cooperating with investigators, placed Spagnuolo on leave and called the use of confidential company information for betting a serious policy breach; the CFTC also filed a civil case.
The case is the second major Polymarket insider-trading prosecution in just over a month, after U.S. Army master sergeant Gannon Van Dyke was accused in April of making more than $400,000 on classified-information bets.
With company secrets becoming betting chips, is any corporate insider now a potential target for insider trading charges?
As regulators use AI to hunt for fraud, can they truly tell the difference between a brilliant bettor and a cheat?