The U.S. government has charged a Google software engineer, Michele Spagnuolo, with insider trading after he reportedly earned $1.2 million through bets on Polymarket concerning the most searched names on Google in 2025. Spagnuolo, an Italian citizen residing in Switzerland, was arrested and brought before a federal judge in New York.
Details of the Allegations
According to the Justice Department, Spagnuolo faces charges of commodities fraud, wire fraud, and money laundering for allegedly misappropriating confidential information from Google. He utilized this data to place profitable trades on a prediction market platform. The unsealed criminal complaint indicates that Spagnuolo operated under the username “AlphaRaccoon” on Polymarket, making bets on the outcomes of Google’s Year in Search for 2025.
Access to Confidential Data
Spagnuolo had access to internal Google systems, including a tool containing confidential, nonpublic Year in Search data. The complaint states that he made over $2.7 million in bets, achieving a profit of $1.2 million after Google publicly released its Year in Search results in early December 2025. His betting strategy included significant wagers against various public figures, including Donald Trump and Bianca Censori.
Google’s Response and Internal Policies
Google has suspended Spagnuolo and is cooperating with law enforcement. The company stated that he accessed marketing materials through a tool available to all employees, but emphasized that using such confidential information for betting constitutes a serious breach of company policy. Google has committed to taking appropriate action following the investigation.
Legal Consequences and Market Integrity
Spagnuolo is also facing a civil complaint from the U.S. Commodity Futures Trading Commission (CFTC), which seeks disgorgement of profits and monetary penalties. The CFTC Chairman highlighted the agency’s commitment to addressing insider trading and maintaining market integrity in prediction markets. The combined maximum penalties for Spagnuolo could reach 50 years in prison, although any sentencing will ultimately be determined by a judge if he is convicted.
This article was produced by NeonPulse.today using human and AI-assisted editorial processes, based on publicly available information. Content may be edited for clarity and style.
