A Google software engineer faces U.S. criminal and civil accusations after prosecutors said he used confidential company information to place Google-related trades on Polymarket. Authorities say Michele Spagnuolo made about $1.2 million in profits between October and December 2025. Prosecutors filed fraud and money laundering charges, while the CFTC filed a separate civil case.
U.S. prosecutors filed a criminal complaint against Spagnuolo, a Google software engineer. The filing became public on Wednesday. The complaint charges him with commodities fraud, wire fraud, and money laundering.
The CFTC also filed a parallel civil complaint. It alleges insider trading under the Commodity Exchange Act. The agency said Spagnuolo used an account called “AlphaRaccoon” on Polymarket.
According to the filings, he placed trades in at least 23 contracts. Those contracts are tied to Polymarket’s ‘2025 Year in Search List.’ They included markets such as ‘#1 Searched Person on Google this year' and ‘Top 5 Most Searched People on Google 2025.’
The complaints allege that Spagnuolo relied on inside information from Google. Prosecutors said that access gave him material knowledge before the market settled. They said the information affected contract prices on Polymarket.
The CFTC argued that the event contracts qualify as swaps under the Commodity Exchange Act. The regulator said their value depends on future events with commercial, economic, or financial impact.
It also said Google’s search rankings carried commercial significance. The agency linked those rankings to Google’s advertising business and search platform. It then argued that the confidential information could influence the related prediction markets.
A Google spokesperson said the company placed Spagnuolo on leave. The spokesperson also said Google is cooperating with law enforcement. The company said the employee accessed marketing material through a tool available to all employees.
Still, the spokesperson said using confidential information to place bets violated company policy. Google said it would take the appropriate action.
Polymarket said its market integrity system flagged the trader. In a post on X, the platform said blockchain trading leaves footprints. It also said this case followed other criminal referrals in the industry.
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The CFTC chair, Michael Selig, said the complaint shows the agency’s commitment to rooting out insider trading in prediction markets. U.S. Attorney Jay Clayton said Spagnuolo violated duties owed to his employer and used Google’s confidential business information for trading profits.
Spagnuolo is a 36-year-old Italian citizen who lives in Switzerland. He faces maximum prison terms of 10 years for commodities fraud, 20 years for wire fraud, and 20 years for money laundering. The CFTC seeks civil penalties, restitution, and trading bans.
The case follows another Polymarket-related insider trading matter last month. In that case, authorities accused an active-duty U.S. soldier of using confidential information before the capture of former Venezuelan President Nicolás Maduro.
The case links a Google engineer to alleged Polymarket insider trading and about $1.2 million in profits. U.S. prosecutors and the CFTC are pursuing criminal and civil action, while Google has placed the employee on leave and is cooperating with investigators.