Google engineer insider-traded search results on Polymarket, Feds allege

The charges people the 2nd large apprehension implicit insider trading connected a prediction market.

May 27, 2026, 9:57 p.m. 2 min read

A Google information engineer, Michele Spagnuolo, was arrested and charged implicit alleged insider trading by placing bets connected Polymarket astir what Google users were searching, U.S. officials alleged connected Wednesday.

According to a ailment unsealed by the U.S. Attorney's Office for the Southern District of New York, Spagnuolo utilized "material nonpublic information" to spot bets connected who would look connected Google's database of most-searched for individuals for 2025, aft Polymarket began offering these markets past fall.

Spagnuolo allegedly utilized an interior Google instrumentality to way who the most-searched-for individuals were and transferred immoderate $3.8 cardinal successful USDC to a Polymarket address, said the complaint, which was signed by FBI Special Agent Brandon Racz.

The account, which utilized the username "AlphaRaccoon," stake that D4vd (a rapper recently charged with murdering a 14-year-old girl) would beryllium 1 of the most-searched for individuals successful precocious November. Spagnuolo allegedly accessed Google's interior tool, which showed D4vd trending, a fewer hours earlier the AlphaRaccoon relationship placed the bet.

The idiosyncratic AlphaRaccoon moved 5 cardinal USDC.e from their Polymarket relationship to a wallet, earlier moving the funds done a swapping work and a privateness tool, the ailment said. Some of the funds were yet moved to an relationship astatine a outgo processor successful Italy, which had been opened by idiosyncratic utilizing Michele Spagnuolo's authorities recognition card.

"Unlike the counterparties to his trades, Spagnuolo knew the result of these wagers earlier the trading nationalist did due to the fact that helium had accessed Google’s confidential, commercially invaluable interior data," the ailment said. "Spagnuolo personally profited much than astir $1,200,000 from his trades based connected nonpublic information. Once helium won, Spagnuolo past took deliberate steps to conceal his unlawful usage of nonpublic accusation by attempting to obscure the root and ownership of his unlawful proceeds."

Spagnuolo is being charged with commodities fraud, ligament fraud and wealth laundering, according to the complaint.

Wednesday's charges people the 2nd large apprehension of idiosyncratic who allegedly traded connected Polymarket utilizing insider information, pursuing an earlier apprehension of a U.S. Army worker who allegedly stake connected the Nicolas Maduro raid helium was portion of.