US prosecutors have charged Google software program engineer Michele Spagnuolo, additionally identified on-line as ‘AlphaRaccoon,’ with allegedly utilizing confidential inner Google search information to revenue roughly $1.2 million via bets positioned on prediction market platform Polymarket.
In line with a prison criticism unsealed within the Southern District of New York, Spagnuolo allegedly accessed nonpublic ‘Yr in Search 2025’ information from Google’s inner programs and used that info to commerce on Google-related markets on Polymarket earlier than the outcomes turned public.
Polymarket Insider Buying and selling Case
Prosecutors charged him with commodities fraud, wire fraud, and cash laundering, whereas the Commodity Futures Buying and selling Fee (CFTC) filed a parallel civil criticism accusing him of insider buying and selling violations underneath the Commodity Change Act. The submitting states that Google retains its “Yr in Search” rankings strictly confidential as a result of the annual marketing campaign is commercially worthwhile and designed round a coordinated public reveal supposed to generate media consideration, person engagement, and promoting demand.
Investigators stated Spagnuolo had entry to a Google inner software program software containing confidential pattern information and that the software itself displayed a “Google Confidential” warning banner. Authorities allege that between October and December 2025, Spagnuolo used the AlphaRaccoon Polymarket account to position bets on no less than 23 Google-related prediction markets, together with contracts tied to the “#1 Searched Particular person on Google this yr” and “High 5 Most Searched Folks on Google 2025.”
The criticism says that after reviewing Google’s inner information on October 15, 2025, Spagnuolo positioned trades the next day, backing Kendrick Lamar to grow to be the highest searched individual of the yr whereas concurrently betting towards Pope Leo XIV attaining the identical outcome. Prosecutors stated he continued putting trades over the next weeks utilizing data unavailable to the general public.
On November 27, 2025, investigators allege that Spagnuolo once more accessed confidential Google search rankings and discovered that musician d4vd had overtaken Kendrick Lamar as the highest trending individual for the yr. Roughly three hours later, the AlphaRaccoon account allegedly positioned bets favoring d4vd regardless of the market assigning virtually no chance to that end result on the time.
The submitting states that the account risked roughly $2.75 million throughout Google Yr in Search-related markets between October 15 and December 4, 2025. After Google publicly launched its Yr in Search outcomes on December 4, prosecutors stated the AlphaRaccoon account generated roughly $1.2 million in income.
Investigators additional allege that Spagnuolo tried to hide the origin of the proceeds by shifting crypto via a number of wallets, decentralized swapping companies, and a privacy-focused switch service.
Kalshi’s Crackdown on Insider Buying and selling Instances
The allegations towards Spagnuolo come as prediction markets face rising scrutiny over insider-style buying and selling exercise. In April, rival platform Kalshi banned three US political candidates after discovering they’d positioned bets tied to their very own election races. These included Minnesota State Senator Matt Klein, Texas congressional candidate Ezekiel Enriquez, and Virginia Senate candidate Mark Moran.
Kalshi stated the trades violated alternate guidelines that prohibit individuals with direct affect over an occasion from buying and selling associated contracts. The platform issued fines and five-year bans.
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