Google Engineer Makes $1.2M on Polymarket Using Confidential Search Data

Google Search Data Case Tests Polymarket’s Market-Integrity Rules

Google software engineer Michele Spagnuolo was charged with commodities fraud, wire fraud, and money laundering after authorities accused him of using confidential Google data to profit from Polymarket contracts. Prosecutors said he made more than $1.2 million through a Polymarket account known as “AlphaRaccoon,” according to the U.S. Department of Justice (DOJ).

The case focuses on Google’s 2025 Year in Search results. Prosecutors said Spagnuolo accessed internal search rankings labeled “Google Confidential” and used that data to trade contracts tied to the most searched person and the top five searched people of 2025. Authorities said he risked about $2.75 million between Oct. 15, 2025, and Dec. 4, 2025.

U.S. Attorney Jay Clayton said:

According to the complaint, the markets were still trading while Google’s Year in Search rankings remained confidential. Prosecutors said Spagnuolo could view the rankings internally before their release, allowing him to buy and sell contracts based on information unavailable to other participants.

CFTC Action Highlights Crypto Rails Behind Event Contracts

The Commodity Futures Trading Commission (CFTC) also filed a civil complaint seeking restitution, disgorgement, civil penalties, trading and registration bans, and a permanent injunction. Its action frames prediction markets as venues where insider-trading rules can apply when event contracts rely on nonpublic business information.

The complaint said the contracts traded in USDC.e, a bridged stablecoin pegged 1:1 to the U.S. dollar. Polymarket has since replaced USDC.e as its primary collateral token with Polymarket USD (pUSD), a Polygon ERC-20 token backed 1:1 by USDC. Winning shares paid $1, while losing shares paid nothing.

CFTC Chairman Michael S. Selig said:

Investigators traced the AlphaRaccoon account to cryptocurrency wallets that prosecutors said funded Polymarket positions and received trading proceeds. Spagnuolo, 36, is an Italian citizen living in Switzerland. The charges carry maximum penalties of 10 years for commodities fraud, 20 years for wire fraud, and 20 years for money laundering.