FBI Charges Google Engineer with Insider Trading After $1.2M Polymarket Bets

A Google software engineer, Michele Spagnuolo, is facing serious charges after allegedly making $1.2 million in profit through insider trading on Polymarket, a prediction market platform. The US Department of Justice (DOJ) and the FBI have accused Spagnuolo of misappropriating confidential information from Google to place bets on which public figures would top the company’s rankings for most searched names in 2025.

Spagnuolo, an Italian citizen living in Switzerland, was arrested and brought before a federal judge in New York. The DOJ announced charges including commodities fraud, wire fraud, and money laundering. According to the unsealed criminal complaint, Spagnuolo used his access to Google’s internal systems, particularly a tool with confidential Year in Search data, to gain an unfair advantage.

Legal and Ethical Implications

The case underscores significant legal and ethical concerns within the tech industry. Spagnuolo allegedly placed bets on Polymarket under the username "AlphaRaccoon," risking over $2.7 million on approximately 25 Google Year in Search 2025 outcomes. Unlike other traders, he knew the outcomes before they were publicly disclosed, giving him a clear edge.

Between October 15, 2025, and December 4, 2025, Spagnuolo’s bets included $937,688 on the "No" side of whether Bianca Censori would be the #1 searched person on Google for the year, and $613,587 on the "No" side of whether Pope Leo XIV would hold the top spot. These bets were made using information that was not available to the general public until Google’s official Year in Search 2025 results were announced in early December.

Google has taken swift action, suspending Spagnuolo and cooperating with law enforcement. In a statement provided to Ars Technica, the company said, “The employee accessed our marketing material using a tool available to all employees, but using such confidential information to place bets is a serious breach of our policies. We’ve placed the employee on leave and will take the appropriate action.”

The Bottom Line

This case highlights the critical importance of data security and ethical conduct within tech companies. The misuse of internal data not only breaches company policy but also undermines trust with users and stakeholders. For Google, this incident could have far-reaching implications, including potential legal penalties, reputational damage, and increased scrutiny over its data access policies.

The broader message for the industry is clear: robust internal controls and stringent ethical guidelines are essential to prevent such abuses of power. As tech companies continue to handle vast amounts of sensitive information, ensuring that employees adhere to high standards of integrity remains a top priority.