A Google safety engineer, Michele Spagnuolo, was arrested and charged over alleged insider buying and selling by putting bets on Polymarket about what Google customers had been looking out, U.S. officers alleged on Wednesday.
In response to a grievance unsealed by the U.S. Legal professional’s Workplace for the Southern District of New York, Spagnuolo used “materials nonpublic data” to position bets on who would seem on Google’s record of most-searched for people for 2025, after Polymarket started providing these markets final fall.
Spagnuolo allegedly used an inner Google instrument to trace who the most-searched-for people had been and transferred some $3.8 million in USDC to a Polymarket tackle, mentioned the grievance, which was signed by FBI Particular Agent Brandon Racz.
The account, which used the username “AlphaRaccoon,” guess on numerous contracts, reminiscent of one which D4vd (a rapper just lately charged with murdering a 14-year-old lady) could be one of many most-searched for people in late November. Spagnuolo allegedly accessed Google’s inner instrument, which confirmed D4vd trending, a couple of hours earlier than the AlphaRaccoon account positioned the guess.
The person AlphaRaccoon moved 5 million USDC.e from their Polymarket account to a pockets, earlier than shifting the funds by means of a swapping service and a privateness instrument, the grievance mentioned. A few of the funds had been in the end moved to an account at a fee processor in Italy, which had been opened by somebody utilizing Michele Spagnuolo’s authorities identification card.
“In contrast to the counterparties to his trades, Spagnuolo knew the end result of those wagers earlier than the buying and selling public did as a result of he had accessed Google’s confidential, commercially beneficial inner knowledge,” the grievance mentioned. “Spagnuolo personally profited greater than roughly $1,200,000 from his trades based mostly on nonpublic data. As soon as he received, Spagnuolo then took deliberate steps to hide his illegal use of nonpublic data by making an attempt to obscure the supply and possession of his illegal proceeds.”
Spagnuolo is being charged with commodities fraud, wire fraud and cash laundering, in line with the grievance.
Wednesday’s prices mark the second main arrest of somebody who allegedly traded on Polymarket utilizing insider data, following an earlier arrest of a U.S. Military soldier who allegedly guess on the Nicolas Maduro raid he was a part of.
In an announcement, a Google spokesperson mentioned, “We’re working with regulation enforcement on their investigation. The worker accessed our advertising and marketing materials utilizing a instrument obtainable to all staff, however utilizing such confidential data to position bets is a severe breach of our insurance policies. We’ve positioned the worker on depart and can take the suitable motion.”
UPDATE (Might 27, 2026, 22:30 UTC): Provides Google assertion, extra context.
