TLDR:
- Google engineer Michele Spagnuolo allegedly used confidential data to profit $1.2M on Polymarket.
- Spagnuolo operated under the alias “AlphaRaccoon” and risked approximately $2.75M in total bets.
- The DOJ charged him with commodities fraud, wire fraud, and money laundering across three counts.
- Combined maximum sentencing across all three federal charges totals up to fifty years in prison.
The U.S. Department of Justice has charged Michele Spagnuolo, a Google software engineer, with commodities fraud, wire fraud, and money laundering.
Prosecutors allege he used confidential company data to place bets on Polymarket, a prediction market platform.
Operating under the alias “AlphaRaccoon,” Spagnuolo allegedly generated over $1.2 million in profits between October and December 2025, risking approximately $2.75 million in total wagers tied to nonpublic Google information.
Federal Authorities Allege Misuse of Internal Google Data
Spagnuolo, 36, is an Italian citizen currently residing in Switzerland. He held a software engineering role at Google that granted him access to internal data systems.
One tool he allegedly used displayed a “Google Confidential” banner in red text. He had also signed confidentiality and ethics agreements with the company.
Prosecutors say he created his Polymarket account in May 2024 under the name “AlphaRaccoon.” He then began accessing internal Google data before placing trades on the platform. The bets were reportedly tied directly to nonpublic information he accessed through his role.
The alleged trading activity ran from October 15 to December 4, 2025. Shortly after Google publicly announced the relevant information, the markets resolved in his favor. His account then collected profits exceeding $1.2 million from those resolved bets.
U.S. Attorney Jay Clayton addressed the case directly, stating that “today’s charges reinforce a decades-old message: corporate insiders cannot use confidential business information to turn a profit in our markets.”
He added that Spagnuolo violated duties owed to his employer and that “insider trading compromises the integrity of our markets.”
Charges Carry a Combined Maximum Sentence of 50 Years
Spagnuolo now faces three separate federal charges. The first is one count of violating the Commodity Exchange Act, carrying a maximum sentence of ten years. The second is one count of wire fraud, which carries up to twenty years in prison.
The third charge is money laundering, also carrying a maximum of twenty years. Together, the charges carry a combined maximum exposure of fifty years in federal prison. The actual sentence, however, will be determined by a judge.
FBI Assistant Director James C. Barnacle, Jr. stated that Spagnuolo “allegedly abused his elevated access to confidential trends to place bets with nonpublic information.”
He further confirmed that “the FBI remains dedicated to searching for fraudsters who betray their employer for personal financial gains.”
The case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Thomas Burnett, Ryan B. Finkel, and Allison Nichols are leading the prosecution.
Spagnuolo was presented before U.S. Magistrate Judge Sarah Netburn in the Southern District of New York following the unsealing of the complaint.
The post DOJ Charges Google Engineer Over $1.2M Polymarket Insider Trading Scheme appeared first on Blockonomi.
Be the first to comment