Google employee accused of making $1 million from insider trading on Polymarket

At a glance:

• Google software engineer Michele Spagnuolo accused of using insider info to earn $1.2 million on Polymarket.
• Charged with commodities fraud, wire fraud and money laundering; placed on leave pending investigation.
• Polymarket introduced new insider‑trading rules in March, but effectiveness remains uncertain.

Allegations and Legal Charges

A federal criminal complaint filed in the United States alleges that software engineer Michele Spagnuolo, who worked at Google, used confidential marketing material accessed via an internal tool to place bets on Polymarket about the top‑searched person on Google for 2025. He is accused of betting that singer d4vd would top the search rankings, netting approximately $1.2 million before attempting to conceal the origin of the funds. The complaint charges him with commodities fraud, wire fraud and money laundering, marking a rare instance of insider trading allegations tied to a prediction market platform.

• commodities fraud
• wire fraud
• money laundering

Insider trading on prediction markets has drawn scrutiny after similar accusations involving high‑profile figures such as an employee of YouTuber MrBeast, political candidates and military personnel, who have all sought to monetize privileged information. These cases highlight how platforms like Polymarket can become conduits for illicit profit when employees or insiders exploit non‑public data. The Federal Trade Commission and the Department of Justice have not yet announced specific penalties, but the charges underscore the legal risks for participants in these markets.

Company Response and Policy Changes

Google issued a statement to ABC News saying it is cooperating with law enforcement and that the employee accessed marketing material through a tool available to all staff, but using that information for betting violates company policy. Google told ABC News: “We're working with law enforcement on their 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. We've placed the employee on leave and will take the appropriate action.” The spokesperson emphasized that the employee has been placed on leave while the investigation proceeds and that appropriate disciplinary action will be taken. Google’s internal review aims to prevent future breaches of confidential information and to reinforce safeguards around the use of proprietary data.

Polymarket adopted revised rules in March that prohibit employees of participating companies from placing bets on markets related to their own products or services, and require greater transparency around account funding sources. The new policies also mandate that all users disclose any material connections to the outcomes they bet on, and the platform has introduced automated monitoring to flag suspicious trading patterns. Despite these measures, analysts note that enforcement remains challenging and that the effectiveness of the rules will be tested as the Google case proceeds.