Google engineer – The U.S. Department of Justice says Google software engineer Michele Spagnuolo used confidential Google information to trade on Polymarket, minting more than $1.2 million in profits while betting about $2.754 million between October and December. DOJ charged h
When the trades began stacking up on Polymarket, it wasn’t just luck at work, the U.S. Department of Justice says. A Google software engineer created a Polymarket account in 2024 under the username “AlphaRaccoon” and then used confidential company information to place bets that generated more than $1.2 million in trading profits.
In a Wednesday news release from the DOJ. New York district attorney Jay Clayton said 36-year-old Michele Spagnuolo—an Italian citizen living in Switzerland—used Google’s confidential business information to profit in prediction markets. The DOJ alleges that Spagnuolo accessed “confidential trends” within Google and then abused that access for personal gain.
Spagnuolo’s account was created in 2024 as “AlphaRaccoon.” Between October and December last year. he bet about $2. 754. 000 on markets tied to Google’s internal information. according to the DOJ. The government estimates the trading profits at “more than $1.2 million. ” a gap that points to how lucrative the alleged advantage was.
The charges are not limited to civil violations. Spagnuolo is accused of violating the Commodity Exchange Act, wire fraud, and money laundering. Taken together, the charges carry a combined maximum sentence of 50 years in prison.
Clayton said: “Today’s charges reinforce a decades-old message: corporate insiders cannot use confidential business information to turn a profit in our markets.”
The case lands at a moment when prediction markets in the United States are under increasingly intense scrutiny. especially from lawmakers who argue that the structure can allow improper trading. Polymarket and Kalshi—platforms where users wager on events such as sports. politics. or pop culture—have faced strong criticism for that reason.
Last week, Minnesota became the first U.S. state to announce a blanket ban on prediction markets, with the ban set to go into effect in August. Lawmakers in Washington have also introduced proposals aimed at tightening rules. Among them are California Sen. Adam Schiff and Utah Sen. John Curtis’ “Prediction Markets Are Gambling Act.”.
Both Polymarket and Kalshi say they have built “guardrails” against insider trading, including preemptively blocking politicians and sportspeople from placing bets.
A LinkedIn account tied to Spagnuolo, according to the DOJ release, describes him as a staff information security engineer. The account also states he was involved in creating the infrastructure to deploy AI agents within Alphabet.
The sequence in the DOJ’s account is stark: confidential Google access. a Polymarket username created in 2024. and then large bets—about $2. 754. 000—on markets tied to that internal information. ending with profits estimated at more than $1.2 million. As prediction markets face bans and new federal proposals. the federal case turns those policy debates into a direct question of whether the marketplace can keep insider information from becoming a tradeable edge.
DOJ Google Polymarket insider trading Michele Spagnuolo AlphaRaccoon Commodity Exchange Act wire fraud money laundering prediction markets Jay Clayton Minnesota ban