- Regulators said the engineer used nonpublic Google search ranking data to trade 23 Polymarket prediction contracts.
- The CFTC alleged the trades generated nearly $1.2M in profits between October and December 2025 using insider data.
- Federal prosecutors also filed criminal charges as regulators increased scrutiny on prediction market insider trading.
A Google software engineer now faces insider trading charges after U.S. regulators accused him of using confidential search data on Polymarket. The Commodity Futures Trading Commission filed the case Wednesday in New York against Michele Spagnuolo, a Swiss resident, alleging he used nonpublic information tied to Google’s 2025 Year in Search rankings. According to the complaint, the trades generated nearly $1.2 million in profits between October and December 2025.
CFTC Details Trading Allegations
According to the CFTC, Spagnuolo worked at Google during the alleged trading period. Regulators said his position gave him access to sensitive internal search ranking information before public release.
The complaint stated Spagnuolo traded at least 23 prediction market contracts on Polymarket. Those contracts included “#1 Searched Person on Google this year” and “Top 5 Most Searched People on Google 2025.”
The CFTC alleged Spagnuolo used the Polymarket account name “AlphaRaccoon” while placing trades with near-perfect accuracy. Regulators argued he violated duties of trust and confidentiality owed to Google.
Meanwhile, the agency requested restitution, disgorgement, civil penalties, trading bans, registration bans, and a permanent injunction.
Criminal Charges Also Filed
Federal prosecutors also moved forward with a separate criminal case tied to the same conduct. On May 27, the U.S. Attorney’s Office for the Southern District of New York unsealed criminal charges against Spagnuolo.
The criminal complaint alleged conduct similar to the CFTC’s civil filing. Additionally, the CFTC credited the U.S. Attorney’s Office for assisting with the investigation.
CFTC Chairman Michael Selig said regulators would continue pursuing fraud and insider trading in prediction markets. He added that enforcement staff would remain “an aggressive cop on the beat.”
Prediction Markets Face New Scrutiny
The case placed additional attention on prediction market platforms and event-based trading contracts. According to the complaint, the alleged trades relied directly on unreleased Google search ranking data.
David Miller, the CFTC’s Director of Enforcement, said employees handling confidential business information cannot use it for personal gain. He also stated the agency would continue targeting fraud, abuse, and market manipulation within markets under CFTC jurisdiction.
