A Google security engineer was arrested in New York and charged with crimes related to bets he allegedly placed on Polymarket using confidential information he pulled from Google systems, the Justice Department said Wednesday. 

Michele Spagnuolo, a 36-year-old Italian citizen who lives in Switzerland, is accused of placing multiple trades on the prediction marketplace last year that netted him a profit of more than $1.2 million. He allegedly abused internal access to Google’s nonpublic Year in Search data and placed a series of bets on the most searched people on Google in 2025.

“Today’s charges reinforce a decades-old message: corporate insiders cannot use confidential information to turn a profit in our markets,” Jay Clayton, U.S. attorney for the Southern District of New York, said in a statement Wednesday. “Insider trading compromises the integrity of our markets, and the American people want this greed-driven conduct investigated and prosecuted.”

Spagnuolo was charged with violating the Commodity Exchange Act, wire fraud and money laundering, which carry a combined maximum sentence up to 50 years in prison. 

He was also served with a civil complaint by the Commodity Futures Trading Commission that accused him of insider trading. The government agency is seeking restitution, disgorgement, civil monetary penalties, trading and registration bans and a permanent injunction against further regulation violations. 

Spagnuolo has been employed as a security engineer at Google since 2014, where he built products, specifications and led multiple projects in the information security unit, according to his company bio, which has since been taken down. 

A Google spokesperson said the company is working with law enforcement on its investigation. “The employee accessed our marketing material using a tool available to all employees, but using such confidential information to place bets is a serious breach of our policies,” the spokesperson said in a statement. “We’ve placed the employee on leave and will take the appropriate action.”

Spagnuolo did not respond to a request for comment.

In a complaint unsealed Wednesday, a federal investigator said Spagnulo, who used the “AlphaRaccoon” user name on Polymarket, took deliberate steps to conceal his use of nonpublic information, including efforts to obscure the source and ownership of his proceeds. 

Prosecutors noted that Google’s internal software tool, which provided Spagnuolo access to search trends, bore a banner that stated “Google Confidential” in red text, adding that Spagnuolo confirmed he understood the company’s various confidentiality and ethics policies to access the data. 

Spagnuolo allegedly created his Polymarket account in May 2024 and placed a series of trades between later that year risking approximately $2.75 million on 25 outcomes that the market treated as unlikely.

The FBI said it traced Spagnuolo’s Polymarket account to a cryptocurrency wallet he allegedly used to fund the account and initiate multiple transfers. Spagnuolo is also accused of sending multiple transactions through a cryptocurrency swapping service that were received by an account in his name linked to his Italian government ID card. 

Spagnuolo allegedly changed his Polymarket username to an alphanumeric wallet address in early December, after Google released its Year in Search results and multiple users on Discord and X speculated the person between the account was a Google insider.