A federal prosecutor in New York charged Google engineer Michele Spagnuolo with using early access to internal Google information to place cryptocurrency bets on Polymarket that returned about $1.2 million in winnings. Spagnuolo was arrested in New York, released on a $2.25 million bond, and Google says it placed the employee on leave while cooperating with investigators.
Allegations And Charges
The U.S. Attorney’s Office for the Southern District of New York says Spagnuolo used confidential marketing material available through an internal Google tool to inform multiple Polymarket wagers between October and December. Prosecutors allege those bets, which totaled about $2.7 million in stake, produced over $1 million in profits by exploiting nonpublic company data.
Arrest And Legal Process
Although an Italian citizen residing in Switzerland, Spagnuolo was arrested and brought before a federal judge in New York and has been released on bond. The U.S. Attorney’s Office worked with the FBI on the investigation and filed charging documents outlining the alleged trades.
How Trades Were Linked
Prosecutors said Spagnuolo used multiple cryptocurrency accounts and the alias AlphaRaccoon on Polymarket, but traced one account to him using an Italian ID when opening it. Law enforcement tied the accounts together and to his activity by following blockchain records and account‑registration evidence, according to the filing.
Alleged Insider Bets
Court papers identify some of Spagnuolo’s highest‑payoff wagers as bets about who would be Google’s most‑searched person in 2025. Prosecutors say he bet against public names such as Bianca Censori and former President Donald Trump and backed the singer D4vd after accessing nonpublic search‑trend data that showed D4vd had become the top search term.
Company And Platform Responses
A Google spokesperson said the company is cooperating with law enforcement and placed the employee on leave, noting that using confidential internal information for betting violates company policy. Polymarket said it worked closely with authorities and highlighted that blockchain transactions are traceable and leave forensic evidence.
Background And Employment
Public profiles indicate Spagnuolo worked at Google for more than 12 years in roles related to information security. According to prosecutors, he began using Polymarket in 2024 and later placed the trades that are the focus of the indictment.
Featured image credits: Flickr
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