US authorities have filed charges against a Google software engineer for allegedly using confidential company data to make around $1.2 million through trades on a prediction market platform. Michele Spagnuolo, an Italian citizen living in Switzerland, faces accusations of commodities fraud, wire fraud, and money laundering related to an insider trading scheme on Polymarket. Prosecutors claim that Spagnuolo, known as “AlphaRaccoon,” misused his position at Google to access internal information and profit from trades based on undisclosed company events.
Spagnuolo, who had access to Google’s internal systems and tools, allegedly violated company policies on confidentiality and ethics. He reportedly used his Polymarket account to place trades connected to non-public Google information between October 15, 2025, and December 4, 2025, risking about $2.75 million. Following the public disclosure of the information and settlement of prediction markets, his account allegedly yielded profits of approximately $1.2 million.
US Attorney Jay Clayton emphasized the importance of upholding regulations against using confidential corporate data for personal financial gain. The Federal Bureau of Investigation (FBI) accused Spagnuolo of exploiting his privileged access to confidential information for trading purposes. Spagnuolo appeared before a US magistrate judge in Manhattan after the complaint was unsealed. If found guilty, he could face a maximum of 10 years for commodities fraud and up to 20 years each for wire fraud and money laundering, with the final sentence determined by the court.
