US accuses Google engineer of making $1.2 million using insider data

New Delhi, May 28 (IANS) US authorities have charged a Google software engineer for allegedly using confidential company information to generate approximately $1.2 million in profits via trading placed on a prediction market platform, according to the Department of Justice (DOJ).

Michele Spagnuolo — a 36-year-old Italian citizen residing in Switzerland — was charged with commodities fraud, wire fraud and money laundering in connection with an alleged insider trading scheme involving prediction market platform Polymarket.

According to prosecutors — Spagnuolo — who allegedly operated under the alias “AlphaRaccoon,” used his position as a software engineer at Google to access confidential internal information and place profitable trades linked to company-related events.

The DOJ alleged that Spagnuolo had access to Google’s internal data systems and confidential software tools as part of his role and had acknowledged company confidentiality and ethics policies.

Moreover, prosecutors said that shortly after accessing internal information, Spagnuolo allegedly used his Polymarket account to place trades tied to non-public company information.

Between October 15, 2025 and December 4, 2025, the account allegedly risked approximately $2.75 million across markets related to Google’s internal information.

As per investigators, once the relevant information became public and the prediction markets settled, the account generated approximately $1.2 million in profits.

In addition, US Attorney Jay Clayton said the charges reinforced longstanding rules against using confidential corporate information for personal gain.

“Corporate insiders cannot use confidential business information to turn a profit in our markets,” Clayton said.

However, the Federal Bureau of Investigation (FBI) alleged that the accused abused privileged access to confidential information to place trades using non-public information.

Spagnuolo appeared before a US magistrate judge in Manhattan following the unsealing of the complaint.

If convicted, Spagnuolo faces a maximum sentence of 10 years for commodities fraud and up to 20 years each for wire fraud and money laundering, although any sentence will ultimately be determined by the court, according to the DOJ.

–IANS

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