Google Employee Charged With Insider Trading After Allegedly Using Confidential Data to Win $1.2M on Polymarket Bets
Federal prosecutors have charged a Google employee with fraud after he allegedly used confidential internal data to make $1.2 million in bets on Polymarket, according to ABC News. The charges, detailed in a now-unsealed complaint, accuse Michele Spagnuolo of knowing the outcome of wagers before the trading public because he accessed Google’s commercially valuable internal data. Spagnuolo was arrested in New York on Wednesday and released on a $2.25 million bond, ABC News reports.
Insider Trading Allegations
The complaint alleges that Spagnuolo, a Google employee, exploited his access to confidential company data to place bets on Polymarket, a decentralized prediction market platform. Prosecutors claim he “knew the outcome of these wagers before the trading public did because he had accessed Google’s confidential, commercially valuable internal data.” The wagers were tied to Search-related trends, allowing him to predict market movements ahead of public disclosure.
Charges and Arrest
Spagnuolo faces three federal charges: commodities fraud, wire fraud, and money laundering. The charges stem from his alleged use of non-public information to gain an unfair advantage on Polymarket, where users bet on outcomes ranging from political events to tech trends. He was arrested in New York on Wednesday and subsequently released on a $2.25 million bond. The case was first reported by ABC News.
Polymarket and Insider Trading
The case highlights growing scrutiny of prediction markets like Polymarket, which have faced regulatory questions over transparency and insider trading risks. Polymarket allows users to wager on real-world events using cryptocurrency, but the platform has struggled with allegations that insiders can exploit confidential information. This incident marks one of the first high-profile insider trading cases involving a tech employee using internal data to profit on such a platform.
Market Context
As of May 27, 2026, the broader cryptocurrency market showed slight declines. Bitcoin (BTC) traded at $74,421, down 1.8% over the past 24 hours. Ethereum (ETH) was priced at $2,025.76, a 2.2% drop in the same period. These movements come amid ongoing regulatory and legal developments that continue to shape investor sentiment in digital asset markets.