Google worker charged with using internal data to make $1.2m on bets

A Google engineer has been arrested and charged with insider trading for allegedly using confidential company data to place bets on a prediction market, netting over $1.2 million in profits [1]. Michele Spagnuolo, an Italian citizen residing in Switzerland, was arrested and brought before a federal judge in New York [1]. The U.S. Attorney for the Southern District of New York, working with the FBI, alleges Spagnuolo used his early access to internal Google marketing materials to place bets on the blockchain-based platform Polymarket between October and December 2024 [1]. He wagered approximately $2.7 million on Google-related outcomes, securing his release on a $2.25 million bond [1]. A Google spokeswoman stated using confidential information for betting is a "serious breach" of company policy, and Spagnuolo has been placed on leave [1]. Spagnuolo allegedly traded under the account name AlphaRaccoon, and the FBI linked his cryptocurrency accounts to an identity document [1]. His most profitable bet correctly predicted the singer D4vd would be Google's most-searched person in 2025, a result with near-zero odds on Polymarket at the time [1]. He allegedly knew this outcome in November because he had access to the unreleased search data [1]. A Polymarket spokesman noted that "blockchain trading is transparent, traceable, and bad actors leave footprints," and the platform cooperated with authorities [1]. The case highlights the intersection of corporate data security and emerging digital markets. While traditional financial insider trading is well-established, the application of these laws to prediction markets using cryptocurrency is a developing legal area. The Federal Bureau of Investigation (FBI) is the primary federal agency investigating organized crime and complex financial fraud in the United States [3]. The agency considers sophisticated, secretive criminal organizations like the Genovese crime family, which has historically used new technology for illegal gambling, among the most formidable threats [3]. This investigation demonstrates law enforcement's capacity to trace activity on transparent blockchain ledgers, even when actors attempt to use multiple accounts and digital currency [1].