Google employee accused of using confidential company data to win $1.2 million in bets

A Google employee has been arrested in the United States after prosecutors accused him of using confidential company information to place highly profitable bets on cryptocurrency-based prediction platform Polymarket.

According to statements from the US Attorney for the Southern District of New York and court documents reviewed by multiple US media outlets, Michele Spagnuolo, an Italian citizen living in Switzerland, allegedly used early access to internal Google data to generate roughly $1.2 million in betting profits.

Federal authorities charged Spagnuolo with violating insider trading laws linked to several prediction market wagers allegedly placed between October and December last year.

The case marks one of the highest-profile investigations so far involving the use of confidential corporate information in online prediction betting markets.

Prosecutors link bets to internal Google information

US prosecutors allege that Spagnuolo used non-public company information obtained through his role at Google to place bets on future outcomes published through Polymarket.

Court filings stated that the engineer allegedly gained access to internal marketing and trend-related information before it became publicly available.

According to prosecutors:

• Spagnuolo allegedly placed approximately $2.7 million in bets tied to Google-related prediction markets
• Authorities claim the bets generated more than $1 million in profits
• The bets were reportedly made using cryptocurrency across multiple accounts
• Prosecutors said he traded under the account name “AlphaRaccoon”

The Federal Bureau of Investigation said investigators linked the accounts to Spagnuolo through one account allegedly opened using an Italian identification card.

Spagnuolo was arrested on Wednesday and later appeared before a federal judge in New York.

According to ABC News, he was released on a $2.25 million bond.

Google places employee on leave

In a statement cited by multiple reports, a Google spokesperson said the company was cooperating with law enforcement authorities and had placed the employee on leave.

The spokesperson stated that the information allegedly used involved internal marketing material accessible through employee tools, but described the alleged use of confidential information for betting purposes as a serious violation of company policy.

According to online profiles referenced in reports, Spagnuolo had worked at Google for more than 12 years and specialised in information security engineering.

The company has not publicly disclosed further details about his role or employment status.

Prediction markets face growing regulatory scrutiny

The investigation also places renewed attention on prediction market platforms such as Polymarket, which allow users to place wagers on future outcomes using cryptocurrency.

Polymarket said it had cooperated closely with authorities during the investigation.

A spokesperson for the platform stated that blockchain-based trading systems are transparent and traceable, adding that “bad actors leave footprints”.

Blockchain technology creates digital transaction records tied to cryptocurrency activity, allowing investigators to trace movements across accounts and wallets.

The broader case reflects increasing regulatory and legal scrutiny around prediction markets, particularly as such platforms grow in popularity across politics, finance, sports and public-interest events.

Court documents detail high-value bets

According to court filings, some of Spagnuolo’s most profitable alleged bets involved predicting which public figures would become the most searched individuals on Google in 2025.

Prosecutors allege that one of the largest wins came after Spagnuolo correctly selected musician D4vd as the future top search trend despite the outcome carrying near-zero odds on the platform at the time.

Court documents reportedly stated that Spagnuolo placed the bet after allegedly accessing internal Google data showing that D4vd had already become the company’s most searched person before the information was publicly released.

The filings also stated that he allegedly placed bets against other high-profile names, including Bianca Censori and US President Donald Trump.

D4vd is currently in jail after being accused of murdering a teenage girl, according to the reports. The allegation against the musician remains separate from the Google investigation.

Insider information risks expand beyond financial markets

The case highlights how insider information concerns are expanding beyond traditional stock trading into newer digital platforms tied to betting, cryptocurrency and predictive analytics.

Historically, insider trading investigations focused largely on securities markets and financial assets. However, regulators and prosecutors are increasingly examining whether confidential corporate information can also distort emerging prediction markets where users wager on real-world outcomes.

The allegations against Spagnuolo suggest that companies may face new governance and compliance risks as employees gain access to large volumes of commercially sensitive behavioural, marketing and trend data that can influence online betting markets.

The investigation remains ongoing.