Google Engineer Arrested After Allegedly Turning Internal Data Into $1.2m Betting Windfall
A long-serving Google engineer has been arrested in the United States after investigators alleged he exploited confidential company information to rake in more than $1.2 million in profits through bets placed on the prediction platform Polymarket.
The U.S. Attorney for the Southern District of New York confirmed that Michele Spagnuolo, an Italian national based in Switzerland, was charged after what authorities describe as a sustained scheme involving insider access to sensitive Google data. He was arrested on Wednesday, May 27, 2026, and later appeared before a federal judge in New York.
Prosecutors allege that Spagnuolo used early access to internal Google material – reportedly marketing-related data available through employee tools – to place high-value wagers on Polymarket, a cryptocurrency-based prediction market platform. The bets, according to court filings, ultimately generated over $1.2 million in winnings.
Google said the employee has been placed on leave and confirmed it is cooperating with law enforcement. A company spokesperson noted that while the internal system used was accessible to staff, using confidential information for personal financial gain constitutes a serious breach of company policy.
Polymarket also said it worked with investigators, stressing that blockchain transactions are traceable and leave digital records that can assist enforcement agencies in identifying misconduct.
Authorities say the FBI worked alongside federal prosecutors to trace the alleged activity. Spagnuolo is reported to have used multiple cryptocurrency accounts while operating under the username “AlphaRaccoon”, but investigators linked the accounts through identity records, including an Italian ID used during registration.
Court documents further allege that between October and December 2025, Spagnuolo placed about $2.7 million in bets tied to Google-related outcomes, using inside knowledge to predict market events before they were publicly known. One of his most profitable wagers involved correctly forecasting Google’s most-searched individual for 2025, ahead of public data release.
He has since been released on a $2.25 million bond, according to U.S. media reports.
Spagnuolo, who had worked at Google for more than 12 years in information security roles, has not publicly responded to the allegations.
The case adds to growing scrutiny over how tech employees with access to sensitive data may be using prediction markets and crypto platforms to monetise non-public corporate information, raising fresh concerns about internal security controls in major tech firms.
