Google Engineer Charged Over Polymarket Bets.

US federal prosecutors have charged a Google software engineer with allegedly using confidential company data to make more than $1.2 million through prediction market bets on Polymarket.

According to the US Department of Justice, Michele Spagnuolo allegedly accessed internal Google search trend information before it became public and used the data to place profitable bets under the online alias “AlphaRaccoon.”

Prosecutors say Spagnuolo used insider knowledge connected to Google’s annual “Year in Search” rankings. Authorities claim he placed high-risk bets on unexpected names, including musician D4vd and rapper Kendrick Lamar, before official search trend results were released.

The US Department of Justice charged him with commodities fraud, wire fraud, and money laundering. Officials say insider trading threatens the integrity of emerging prediction markets and financial systems.

The case highlights growing concerns surrounding the rapid expansion of prediction market platforms like Polymarket. Regulators increasingly worry that confidential information could be exploited for gambling-style financial gains.

Google confirmed that using confidential internal data for betting violates company policy and stated that the employee has been placed on leave while investigations continue.

The complaint also states that Spagnuolo currently resides in Switzerland, adding international attention to the case. Federal prosecutors in New York say they will continue targeting corporate insiders who misuse sensitive information for personal profit.