Google Engineer Charged With Insider Trading via Prediction Platform Bets
BBC Business reported Wednesday that a long-serving Google engineer faces federal insider trading charges. Prosecutors allege he used confidential company data to place winning bets on a prediction platform, netting over $1.2M in profits.
Federal Charges Filed in New York
The US Attorney for the Southern District of New York charged Michele Spagnuolo, a Google information security engineer, with violating federal insider trading laws. Although Spagnuolo is an Italian citizen residing in Switzerland, he was arrested Wednesday and appeared before a federal judge in New York. He was subsequently released on a $2.25M bond, according to ABC News.
Spagnuolo allegedly traded under the pseudonym AlphaRaccoon. Federal investigators linked his multiple cryptocurrency accounts to him after identifying one account opened with an Italian identification document.
Also Read: What Is Prediction Market Trading and Why Regulators Are Watching
How the Alleged Scheme Worked
Between October and December 2025, Spagnuolo reportedly placed roughly $2.7M in bets connected to Google-related outcomes on the prediction platform. He allegedly leveraged marketing material accessible through an internal company tool available to all Google employees. That advance knowledge allegedly let him accurately predict outcomes that carried near-zero odds publicly.
The most striking alleged win involved correctly picking the most-searched person on Google in 2025. Court documents say Spagnuolo placed bets in November 2025 already knowing who held that top spot internally, well before any public announcement.
Google confirmed the employee had been placed on administrative leave. A company spokesperson told BBC Business that using confidential data to place bets is a clear policy violation, even if the internal tool itself was widely available.
Also Read: SEC Insider Trading Enforcement Overview
Background on Insider Trading Enforcement
Insider trading laws in the United States broadly prohibit using material non-public information to gain an unfair advantage in financial markets. Regulators have historically focused on equities, but enforcement has steadily expanded to cover newer asset classes and platforms. This case marks one of the first high-profile applications of insider trading doctrine to a prediction market.
The FBI worked alongside federal prosecutors throughout the investigation. The prediction platform involved cooperated fully with authorities and noted that blockchain-based transactions are inherently traceable, making patterns of suspicious activity easier to identify.
What Comes Next
Spagnuolo has not publicly commented on the charges. Google said it is actively cooperating with the law enforcement investigation. Legal experts expect this case to set an important precedent for how insider trading rules apply to prediction platforms going forward.
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