DOJ Charges Google Engineer With Using Search-Trend Data For $1.2 Million Polymarket Bets
The Justice Department charged Google engineer Michele Spagnuolo with using internal search-trend data to place Polymarket bets that prosecutors say netted him more than $1.2 million.[1]
He was arrested in New York after an indictment was unsealed and then released on a $2.25 million bond.[1] Prosecutors say Spagnuolo used an internal Google tool in late 2025 to view confidential data on the company's top-trending 2025 searches.[1] They say he placed millions of dollars in Polymarket bets about whether specific celebrities would appear in Google's Year in Search rankings.[1] Prosecutors say the trader using the handle "AlphaRaccoon" correctly bet that singer D4vd would be among the most-searched people and ultimately netted more than $1.2 million.[1] Court papers say he moved millions in cryptocurrency from his Polymarket account to an external wallet.[1]
CBS reports Spagnuolo is an Italian citizen living in Switzerland, and Google has placed him on leave while it investigates.[1] Polymarket said it flagged the trader, cooperated closely with federal authorities and described its cooperation as the only one so far to yield U.S. insider-trading charges.[1] This case is the second recent prosecution tied to Polymarket after an April matter in which a U.S. special forces soldier is accused of winning more than $400,000 by betting on a secret raid to capture Nicolás Maduro.[1]
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📌 Key Facts
- On Wednesday, May 27, 2026, the indictment was unsealed against Google engineer Michele Spagnuolo; he was arrested in New York and released on a $2.25 million bond after a magistrate appearance the indictment.
- Court papers allege Spagnuolo used an internal Google tool in late 2025 to access confidential data on the company's top-trending 2025 searches and then placed millions in bets on Polymarket about whether specific celebrities would appear in Google's Year in Search rankings internal Google tool.
- Prosecutors say the trader using the handle "AlphaRaccoon" correctly bet that singer D4vd would be among 2025's most-searched people, ultimately netting more than $1.2 million in profits before moving millions in cryptocurrency from his Polymarket account to an external wallet AlphaRaccoon.
- CBS reports Spagnuolo is an Italian citizen living in Switzerland; Google has placed him on leave and said he accessed confidential marketing material via a tool available to employees but violated company policy by using it for betting Google.
- Polymarket said on X that it had flagged the trader, cooperated closely with federal authorities and described itself as the only prediction platform so far whose cooperation has led to U.S. insider-trading charges Polymarket.
- The article notes this is the second recent insider-trading prosecution tied to Polymarket, following an April 2026 case in which a U.S. special forces soldier is accused of winning over $400,000 by betting on a secret raid to capture former Venezuelan leader Nicolás Maduro April 2026 case.
📰 Source Timeline (2)
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- On Wednesday, May 27, 2026, the indictment against Google engineer Michele Spagnuolo was unsealed and he was arrested in New York, then released on $2.25 million bond after a magistrate appearance.
- Court papers allege Spagnuolo used an internal Google tool in late 2025 to access confidential data on the company's top-trending 2025 searches, then placed millions in Polymarket bets on whether specific celebrities would appear in Google's Year in Search rankings.
- Prosecutors say Spagnuolo, using the handle "AlphaRaccoon," correctly bet that singer D4vd would be among 2025's most-searched people and ultimately netted more than $1.2 million in profits before moving millions in cryptocurrency from his Polymarket account to an external wallet.
- CBS reports that Spagnuolo is an Italian citizen living in Switzerland; Google has placed him on leave and said he accessed confidential marketing material via a tool available to all employees but violated company policy by using it for betting.
- Polymarket stated on X that it had flagged the trader and said it cooperated closely with federal authorities, describing itself as the only prediction platform so far whose cooperation has led to insider-trading charges in the U.S.
- The article notes that this is the second recent insider-trading prosecution tied to Polymarket, following an April 2026 case against a U.S. special forces soldier accused of winning over $400,000 by betting on a secret raid to capture former Venezuelan leader Nicolás Maduro.