A Google software engineer has been charged with fraud by US authorities after allegedly using insider information to win more than $1.2 million in bets on the prediction market platform Polymarket. Michele Spagnuolo, an Italian citizen residing in Switzerland, is accused of leveraging confidential information about Google’s annual most-searched list to inform his wagers, according to a criminal complaint unsealed on Wednesday.

US prosecutors contend that Spagnuolo, operating under the pseudonym “AlphaRaccoon” on Polymarket, placed trades on markets tied to the outcomes of Google’s 2025 Year in Search results. The total value of these bets amounted to approximately $2.75 million, as detailed in the complaint filed in federal court in New York.

Among his alleged successes, Spagnuolo is accused of correctly predicting that indie pop musician d4vd would be the most-searched person globally last year. Prosecutors state this prediction was made just hours after Spagnuolo had accessed confidential data at Google, highlighting the alleged timing of his illicit activity.

Spagnuolo, 36, is facing charges including commodities fraud, wire fraud, and money laundering. US Attorney for the Southern District of New York, Damian Williams, stated that the charges send a clear message that corporate insiders cannot profit from confidential business information. He emphasized that such insider trading undermines market integrity and that the American public expects this type of greed-driven behavior to be investigated and prosecuted.

Google has confirmed its cooperation with law enforcement agencies and stated that the use of confidential information for betting purposes represents a serious violation of company policy. A spokesperson for the tech giant indicated that Spagnuolo has been placed on leave pending the outcome of the investigation.

A representative for Polymarket noted the company's close collaboration with the US Attorney's Office on the investigation. They highlighted Polymarket as the first prediction platform whose cooperation has directly led to insider trading charges in the United States, underscoring their commitment to fair and transparent markets and adherence to regulations.

This case follows a recent similar incident where a US soldier was charged with using classified military information to place bets on Polymarket concerning the potential capture of Venezuelan President Nicolas Maduro. Prosecutors allege that this soldier profited over $400,000 from knowledge of a US operation.

These events have prompted discussions and legislative proposals, including a bill introduced by senators aiming to ban US government officials from participating in prediction market trading. The focus on insider trading within prediction markets raises significant questions about oversight and the potential for misuse of non-public information across various sectors.