The U.S. Department of Justice has indicted Google software engineer Michele Spagnuolo on insider trading charges, accusing the company’s employees of making $1.2 million in trades on Polymarket based on confidential business information.
Spagnuolo, who used the name “AlphaRaccoon” at Polymarket, has worked at Google for more than 12 years, according to information on LinkedIn.
“As alleged, Mr. Spagnuolo breached his obligations to his employer and used Google’s confidential business information to obtain more than $1.2 million in profits from Polymarket transactions,” Jay Clayton, the U.S. attorney for the Southern District of New York, said in a press release. “Insider trading undermines the integrity of our markets, and the American people want this greedy practice investigated and prosecuted.”
Prediction markets like Polymarket, Kalshi, etc. allow users to bet on almost anything. Insider trading is illegal and therefore not allowed on these platforms, but some users still commit the violation. The Department of Justice recently indicted a U.S. Army soldier for allegedly using inside information about U.S. military operations to arrest Venezuelan President Nicolás Maduro and make $400,000 in polymarkets.
According to the complaint, Spagnuolo risked more than $2.7 million on bets related to Google’s “Search 2025” marketing campaign announcing the world’s most popular searches that year. Spagnuolo allegedly accessed confidential internal Google search data about the most searched celebrities to inform the stakes.
“Polymarket works closely with the U.S. Attorney’s Office for the Southern District of New York and the CFTC, and to date is the only prediction platform whose collaboration has led to insider trading charges in the United States,” a Polymarket spokesperson told TechCrunch. “Blockchain transactions are transparent and traceable, and bad actors leave their mark. We are committed to maintaining accurate, fair, and transparent markets, as well as enforcing the rules and cooperating with regulators and law enforcement.”
A Google spokesperson told TechCrunch that the company is working with law enforcement on the investigation.
“While the employee accessed our marketing materials using tools available to all employees, using such confidential information to place bets is a serious violation of our policies,” Google said in an emailed statement. “We have placed the employee on leave and will take appropriate action.”
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