New Delhi
US authorities have charged a Google software engineer with allegedly earning $1.2 million through insider trading using confidential company information on a prediction market platform. The case was announced by the US Department of Justice (DOJ).
The accused, Michele Spagnuolo, a 36-year-old Italian citizen living in Switzerland, faces charges of commodities fraud, wire fraud and money laundering linked to trades placed on Poly market. Prosecutors claim he operated under the online alias “Alpha Raccoon”.
According to investigators, Spagnuolo used his role at Google to gain access to confidential internal data and software tools. Authorities allege that he then used non-public company information to place profitable bets on prediction markets tied to Google-related events.
The DOJ stated that between October 15 and December 4, 2025, the account allegedly placed trades worth around $2.75 million based on confidential information. Once the information became public and the markets settled, the trades reportedly generated nearly $1.2 million in profits.
Prosecutors said Spagnuolo had acknowledged Google’s confidentiality and ethics policies as part of his employment responsibilities. They argue that he knowingly misused privileged access for personal financial gain.
US Attorney Jay Clayton said the charges demonstrate that insider trading laws apply to emerging digital prediction markets as well as traditional financial markets. He stressed that corporate insiders cannot exploit confidential business information for personal profit.
The Federal Bureau of Investigation (FBI) also accused Spagnuolo of abusing his privileged access to confidential company data. He appeared before a US magistrate judge in Manhattan after the complaint was unsealed.
If convicted, Spagnuolo could face up to 10 years in prison for commodities fraud and as much as 20 years each for wire fraud and money laundering. Final sentencing, however, would be determined by the court.
