Google Employee Accused of $1.2M Fraud Using Insider Information

US federal prosecutors have accused Google engineer Michele Spagnuolo of fraud after he allegedly earned $1.2M on the prediction betting platform Polymarket. According to the indictment, Spagnuolo used confidential company data to place winning bets on 2025 search trend predictions that were not publicly known.

Spagnuolo, known on the platform as AlphaRacoon, drew media and social media attention in December last year when his bets on unexpected search trend outcomes proved correct. For example, he accurately predicted that musician D4vd would become the most popular search query in 2025, despite Polymarket’s low probability assessment for the event.

The indictment also notes that Spagnuolo took steps to conceal the illicit origin of the funds, attempting to disguise their source. Google confirmed that the employee had access to marketing materials, but using such data for personal gain constitutes a serious violation of corporate policy. The company has already suspended Spagnuolo and intends to take appropriate action.

Polymarket, for its part, stated that its market integrity control system detected suspicious activity. The company emphasized the transparency of blockchain transactions, which allow tracking of dishonest participants’ actions. The regulation of prediction markets remains contentious: some states seek stricter oversight, while the Commodity Futures Trading Commission (CFTC) insists on exclusive regulatory authority over such platforms.