NEW DELHI — U.S. authorities have charged a Google software engineer with allegedly using confidential company information to make about $1.2 million in profits through trades on a prediction market platform, according to the Department of Justice.
Michele Spagnuolo, a 36-year-old Italian citizen living in Switzerland, was charged with commodities fraud, wire fraud and money laundering in connection with an alleged insider trading scheme involving Polymarket.
Prosecutors said Spagnuolo, who allegedly used the alias “AlphaRaccoon,” used his position as a Google software engineer to access confidential internal information and place profitable trades linked to company-related events.
According to the Justice Department, Spagnuolo had access to Google’s internal data systems and confidential software tools as part of his job. Prosecutors said he had also acknowledged the company’s confidentiality and ethics policies.
Shortly after accessing internal information, Spagnuolo allegedly used his Polymarket account to place trades tied to non-public company information, prosecutors said.
Between Oct. 15 and Dec. 4, 2025, the account allegedly risked about $2.75 million across markets related to Google’s internal information.
Investigators said that after the relevant information became public and the prediction markets settled, the account generated about $1.2 million in profits.
U.S. Attorney Jay Clayton said the charges reinforced longstanding rules against using confidential corporate information for personal gain.
“Corporate insiders cannot use confidential business information to turn a profit in our markets,” Clayton said.
The FBI alleged that Spagnuolo abused privileged access to confidential information to place trades using non-public information.
Spagnuolo appeared before a U.S. magistrate judge in Manhattan after the complaint was unsealed.
If convicted, he faces a maximum sentence of 10 years for commodities fraud and up to 20 years each for wire fraud and money laundering. Any sentence would be determined by the court, according to the Justice Department. (Source: IANS)
