US Charges Google Employee Over Alleged Polymarket Insider Trading

US authorities have charged Google software engineer Michele Spagnuolo for allegedly using confidential company information to place bets on crypto prediction platform Polymarket and earn around $1.2 million in profits.

According to the US Department of Justice, Spagnuolo allegedly accessed non-public internal Google data and placed 25 bets worth nearly $2.7 million on prediction markets connected to the most searched people on Google in 2025. Prosecutors claim he used a Polymarket account named “AlphaRaccoon” to make successful bets on outcomes that many traders considered unlikely before Google publicly released the search data in December.

The Commodity Futures Trading Commission (CFTC) filed a separate complaint on the same day, accusing Spagnuolo of insider trading linked to prediction markets.

AlphaRaccoon Account Raised Suspicion Online

Court documents said users on Discord and X began suspecting in December that the AlphaRaccoon account may belong to someone working inside Google. Soon after, prosecutors claim the username was changed to a crypto wallet address.

Authorities also alleged that funds from the account were later moved through a decentralized crypto swapping service and another transfer platform offering blockchain privacy protection.

Polymarket Insider Trading Concerns Grow

The case comes as prediction markets face increasing pressure from regulators and lawmakers. US Congress recently opened an inquiry into platforms like Polymarket and Kalshi, asking how they handle insider trading concerns.

Manhattan US District Attorney Jay Clayton said the case sends a clear message that company insiders cannot use confidential business information to make profits in financial markets.

Spagnuolo now faces charges including commodities fraud, wire fraud and money laundering, carrying a maximum possible sentence of up to 50 years in prison.