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The U.S. Justice Department charged Google software engineer Michele Spagnuolo with insider trading<\/a>, alleging the employee made $1.2 million trading on Polymarket based on confidential business information.<\/p>\n Spagnuolo, who used the name \u201cAlphaRaccoon\u201d on Polymarket, has worked at Google for over 12 years, according to information on LinkedIn.<\/p>\n \u201cAs alleged, Spagnuolo violated the duties he owed to his employer and used Google\u2019s confidential business information to make more than $1.2 million in trading profits on Polymarket,\u201d Jay Clayton, the United States Attorney for the Southern District of New York, said in a press release. \u201cInsider trading compromises the integrity of our markets, and the American people want this greed-driven conduct investigated and prosecuted.\u201d<\/p>\n Prediction markets like Polymarket, Kalshi, and others allow users to bet on pretty much anything. Insider trading is not allowed on these platforms because it\u2019s illegal, but some users still commit the offense. The Justice Department recently charged a U.S. Army soldier<\/a> for allegedly using his insider knowledge of the U.S. military operation to capture Venezuelan president Nicol\u00e1s Maduro to make $400,000 on Polymarket.<\/p>\n According to the complaint, Spagnuolo risked over $2.7 million on wagers related to Google\u2019s 2025 Year in Search<\/a>, a marketing campaign in which Google reveals the world\u2019s most popular searches of the year. Spagnuolo allegedly accessed confidential, internal Google Search data about the most-searched celebrities to inform his bets.<\/p>\n \u201cPolymarket worked closely with the U.S. Attorney\u2019s Office for the Southern District of New York and the CFTC, and is the only prediction platform to date whose cooperation has led to insider trading charges in the United States,\u201d a Polymarket spokesperson told TechCrunch. \u201cBlockchain trading is transparent, traceable, and bad actors leave footprints. We are committed to maintaining accurate, fair, and transparent markets as well as enforcing our rules and working with our regulators and law enforcement.\u201d<\/p>\n A Google spokesperson told TechCrunch the company is working with law enforcement on its investigation. <\/p>\n \u201cThe employee accessed our marketing material using a tool available to all employees, but using such confidential information to place bets is a serious breach of our policies,\u201d Google said in an emailed statement, \u201cWe\u2019ve placed the employee on leave and will take the appropriate action.\u201d<\/p>\n<\/div>\n When you purchase through links in our articles, we may earn a small commission<\/a>. This doesn\u2019t affect our editorial independence.<\/em><\/p>\n