A Google safety engineer, Michele Spagnuolo, was arrested and charged over alleged insider buying and selling by inserting bets on Polymarket about what Google customers have 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 info” 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 device to trace who the most-searched-for people have 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 varied contracts, resembling one which D4vd (a rapper recently charged with murdering a 14-year-old woman) can be one of many most-searched for people in late November. Spagnuolo allegedly accessed Google’s inner device, which confirmed D4vd trending, a couple of hours earlier than the AlphaRaccoon account positioned the guess.
The consumer AlphaRaccoon moved 5 million USDC.e from their Polymarket account to a pockets, earlier than transferring the funds by means of a swapping service and a privateness device, the grievance mentioned. A few of the funds have been in the end moved to an account at a cost 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 result of those wagers earlier than the buying and selling public did as a result of he had accessed Google’s confidential, commercially invaluable inner knowledge,” the grievance mentioned. “Spagnuolo personally profited greater than roughly $1,200,000 from his trades primarily based on nonpublic info. As soon as he received, Spagnuolo then took deliberate steps to hide his illegal use of nonpublic info by trying 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 fees mark the second main arrest of somebody who allegedly traded on Polymarket utilizing insider info, following an earlier arrest of a U.S. Military soldier who allegedly guess on the Nicolas Maduro raid he was a part of.
In a press release, a Google spokesperson mentioned, “We’re working with regulation enforcement on their investigation. The worker accessed our advertising materials utilizing a device accessible to all staff, however utilizing such confidential info 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.
