CFTC Charges Google Employee with Insider Trading on Polymarket Using Search Data

TLDR:

• Google engineer Michele Spagnuolo allegedly earned $1.2M trading on Polymarket using confidential search data.
• Spagnuolo traded under the handle “AlphaRaccoon,” placing bets on 23 Google Year in Search event contracts.
• The CFTC filed a civil complaint seeking penalties, disgorgement, and a permanent ban on Spagnuolo’s trading activities.
• Federal prosecutors unsealed a parallel criminal complaint against Spagnuolo on the same day as the CFTC filing.

A Google software engineer faces federal charges after allegedly using confidential company data to profit on prediction markets.

The U.S. Commodity Futures Trading Commission filed a complaint on May 27, 2026, against Michele Spagnuolo, a Switzerland-based Google employee.

Spagnuolo allegedly traded event contracts on Polymarket.com using nonpublic information about Google’s 2025 Year in Search results.

The CFTC is seeking restitution, disgorgement, civil penalties, and a permanent trading ban.

How Spagnuolo Allegedly Used Google’s Nonpublic Data

Spagnuolo worked as a software engineer at Google during the relevant period. Through his role, he gained access to sensitive, nonpublic data tied to Google’s official 2025 Year in Search list. That access came with a duty to keep the information confidential and not use it for personal gain.

Between October and December 2025, Spagnuolo reportedly traded on at least 23 event contracts on Polymarket. He bought “Yes” or “No” shares on contracts like “#1 Searched Person on Google this year.” His accuracy across those trades was described as near-perfect.

Operating under the Polymarket handle “AlphaRaccoon,” Spagnuolo allegedly generated around $1.2 million in profits. That level of return, across dozens of contracts tied to nonpublic search data, drew regulatory attention.

The CFTC’s complaint was filed in the U.S. District Court for the Southern District of New York. The agency is seeking trading and registration bans, along with a permanent injunction against further violations of the Commodity Exchange Act.

Criminal Charges Filed in Parallel by Federal Prosecutors

On the same day the CFTC announced its complaint, federal prosecutors moved separately. The U.S. Attorney’s Office for the Southern District of New York unsealed a criminal complaint against Spagnuolo. The criminal charges mirror the conduct alleged by the CFTC.

CFTC Chairman Michael S. Selig addressed the case directly. “The Commission will not tolerate fraud, manipulation, or insider trading, regardless of the technology or platform that is used,” Selig said. His remarks pointed to prediction markets as an area of active regulatory focus.

David I. Miller, Director of Enforcement, reinforced that position. “Employees who are entrusted with confidential business information cannot misappropriate that information for personal financial gain,” Miller stated.

He described the Division as actively policing insider trading across prediction markets and other markets within CFTC jurisdiction.

Miller also noted the broader scope of the effort. “The Division is a cop on the beat in policing the illegal use of inside information in the prediction markets,” he added. That framing positions this case as part of a wider enforcement pattern, not an isolated action.

The CFTC credited the U.S. Attorney’s Office for its assistance in the matter. Together, the civil and criminal actions mark one of the more prominent insider trading cases tied to prediction market activity to date.

The case sets a clear precedent for how regulators view the misuse of proprietary data in emerging contract markets.

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