TLDR
- DOJ says Spagnuolo allegedly used Google data before placing large Google-related Polymarket bets in 2025.
- Prosecutors allege the AlphaRaccoon account risked about $2.75 million across markets tied to Google information.
- The complaint says Polymarket trades produced more than $1.2 million after related markets resolved publicly.
- Spagnuolo faces counts tied to commodities fraud, wire fraud, and money laundering in Manhattan court.
- Authorities said the case involves prediction market bets, not stock trades, based on workplace access.
The U.S. Department of Justice charged Google software engineer Michele Spagnuolo in a Polymarket insider trading case. Prosecutors say he used confidential Google business data to make more than $1.2 million in trading profits.
The complaint identifies his Polymarket account as “AlphaRaccoon” and ties it to Google-related markets. The filing says the activity ran from October 15, 2025, through December 4, 2025.
The case comes from the U.S. Attorney’s Office for the Southern District of New York. It names Polymarket as the platform used for the alleged wagers. The DOJ did not say the platform faced charges in the release.
DOJ Alleges Google Data Was Used For Polymarket Trades
The complaint names Spagnuolo, 36, an Italian citizen who resides in Switzerland. It says he worked at Google and had access to internal data systems. One internal tool displayed a red “Google Confidential” banner, according to prosecutors.
According to the complaint, Spagnuolo created a Polymarket account in May 2024. Authorities say the account used the name “AlphaRaccoon” for the alleged trades. Prosecutors say he placed bets soon after accessing confidential Google information.
From October 15, 2025, to December 4, 2025, the account risked about $2.75 million. DOJ says the wagers related to Google information that was not public at the time. The markets later resolved after Google’s information became public, according to the complaint.
DOJ says Spagnuolo certified that he understood Google confidentiality and ethics policies. Prosecutors cite that point while describing his duties to the company. They also connect the trades to business data that Google had not released.
Charges Include Commodities Fraud And Money Laundering
Spagnuolo faces one count under the Commodity Exchange Act. He also faces one count of wire fraud and one count of money laundering. DOJ said each charge carries a separate maximum prison term.
The Commodity Exchange Act count carries up to 10 years in prison. Wire fraud and money laundering each carry up to 20 years under federal law. DOJ noted that any sentence would be set by the judge.
Prosecutors presented Spagnuolo before U.S. Magistrate Judge Sarah Netburn in Manhattan federal court. The Southern District of New York said the complaint was unsealed in the case. The complaint remains an allegation, and the charges have not been proven in court.
The case belongs to the office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Thomas Burnett, Ryan B. Finkel, and Allison Nichols handle the prosecution. DOJ praised the FBI for work tied to the investigation.
Officials Say Insider Trading Rules Apply To Prediction Markets
U.S. Attorney Jay Clayton said the case carries a familiar message for corporate insiders. “Corporate insiders cannot use confidential business information to turn a profit in our markets,” Clayton said. He said insider trading compromises market integrity and harms public trust.
FBI official James C. Barnacle, Jr. also addressed the alleged conduct. He said Spagnuolo “allegedly abused his elevated access” and sought personal financial gains. The FBI said it continues to search for fraud tied to workplace secrets.
For crypto readers, the case draws attention to prediction markets and employee data access. Polymarket lets users trade on the outcome of future events using market-based bets. DOJ says this matter centers on alleged misuse of Google information, not normal market research.
The DOJ release did not accuse Polymarket of wrongdoing in the complaint summary. The focus stays on the alleged conduct of the Google employee. The case also places prediction markets inside a broader insider trading debate.
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