Google employee charged with fraud over $1.2 million Polymarket bets

Federal prosecutors charged Google employee Michele Spagnuolo with commodities fraud, wire fraud, and money laundering after he allegedly used internal company data to win $1.2 million betting on prediction markets. Spagnuolo placed wagers on Google’s “Year in Search 2025” results under the username AlphaRacoon, correctly predicting outcomes that had near-zero probability on Polymarket. Prosecutors allege he accessed confidential information available to employees and then took steps to conceal the source of his winnings. Spagnuolo was arrested in New York and released on a $2.25 million bond. Google placed the employee on leave and said it is cooperating with the investigation. Polymarket said its market integrity systems flagged the activity.