Google Engineer Accused of Turning Secret Search Data Into a $1.2M Polymarket Profit

US prosecutors have charged Google software program engineer Michele Spagnuolo, additionally recognized on-line as ‘AlphaRaccoon,’ with allegedly utilizing confidential inner Google search information to revenue roughly $1.2 million by way of bets positioned on prediction market platform Polymarket.

According to a prison grievance unsealed within the Southern District of New York, Spagnuolo allegedly accessed nonpublic ‘Year in Search 2025’ information from Google’s inner programs and used that info to commerce on Google-related markets on Polymarket earlier than the outcomes turned public.

Polymarket Insider Trading Case

Prosecutors charged him with commodities fraud, wire fraud, and cash laundering, whereas the Commodity Futures Trading Commission (CFTC) filed a parallel civil grievance accusing him of insider buying and selling violations beneath the Commodity Exchange Act. The submitting states that Google retains its “Year in Search” rankings strictly confidential as a result of the annual marketing campaign is commercially invaluable and designed round a coordinated public reveal meant to generate media consideration, consumer engagement, and promoting demand.

Investigators stated Spagnuolo had entry to a Google inner software program software containing confidential development information and that the software itself displayed a “Google Confidential” warning banner. Authorities allege that between October and December 2025, Spagnuolo used the AlphaRaccoon Polymarket account to put bets on at the very least 23 Google-related prediction markets, together with contracts tied to the “#1 Searched Person on Google this yr” and “Top 5 Most Searched People on Google 2025.”

The grievance says that after reviewing Google’s inner information on October 15, 2025, Spagnuolo positioned trades the next day, backing Kendrick Lamar to turn out to be the highest searched individual of the yr whereas concurrently betting in opposition to Pope Leo XIV attaining the identical consequence. Prosecutors stated he continued putting trades over the next weeks utilizing information unavailable to the general public.

On November 27, 2025, investigators allege that Spagnuolo once more accessed confidential Google search rankings and realized that musician d4vd had overtaken Kendrick Lamar as the highest trending individual for the yr. Roughly three hours later, the AlphaRaccoon account allegedly positioned bets favoring d4vd regardless of the market assigning nearly no chance to that end result on the time.

The submitting states that the account risked roughly $2.75 million throughout Google Year in Search-related markets between October 15 and December 4, 2025. After Google publicly launched its Year in Search outcomes on December 4, prosecutors stated the AlphaRaccoon account generated roughly $1.2 million in income.

Investigators additional allege that Spagnuolo tried to hide the origin of the proceeds by shifting crypto by way of a number of wallets, decentralized swapping providers, and a privacy-focused switch service.

Kalshi’s Crackdown on Insider Trading Cases

The allegations in opposition to Spagnuolo come as prediction markets face growing scrutiny over insider-style buying and selling exercise. In April, rival platform Kalshi banned three US political candidates after discovering they’d positioned bets tied to their very own election races. Those included Minnesota State Senator Matt Klein, Texas congressional candidate Ezekiel Enriquez, and Virginia Senate candidate Mark Moran.

Kalshi stated the trades violated alternate guidelines that prohibit individuals with direct affect over an occasion from buying and selling associated contracts. The platform issued fines and five-year bans.

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