The U.S. attorney’s office has charged Google employee Michele Spagnuolo over alleged use of internal search data to profit on Polymarket. Investigators say the trades generated approximately $1.2 million in gains.

Allegations and charges

According to the indictment, Spagnuolo placed bets under the account name AlphaRacoon, relying on confidential Google trends information not available to the public. Prosecutors assert he ‘‘knew the outcome of these wagers before the general public, because he had access to confidential, commercially valuable internal Google data.’’

«He knew the outcome of these wagers before the general public, because he had access to confidential, commercially valuable internal Google data.»

Targeted markets and examples

The trades reportedly targeted outcomes in Google’s annual "Year in Search" rankings, which Google compiles based on the largest traffic increases between January 1 and November 25, 2025. In one alleged trade, Spagnuolo correctly bet that artist D4vd would be the top search growth performer for 2025 despite the market assigning near-zero probability to that result.

Detection and legal process

Suspicious activity was flagged by Forbes and social media users in December 2025, prompting further scrutiny. Spagnuolo was arrested in New York, released on bail of $2.25 million, and faces three federal counts: commodities fraud, wire fraud, and money laundering.

«He took affirmative steps to conceal the unlawful use of non-public information, attempting to disguise the source and ownership of the proceeds.»

Context and mechanics

Prosecutors emphasize that access to Google’s unpublished methodology for ranking search growth allegedly provided a trading edge on prediction markets. The indictment alleges deliberate actions to hide the origin and ownership of the proceeds derived from those trades.