A federal criminal complaint accuses Google software engineer Michele Spagnuolo of using insider information from his employer to place bets on Polymarket. The allegations claim he bet on Google search outcomes for 2025, including that the top-searched person would be singer d4vd, and earned $1.2 million. The complaint also alleges he tried to conceal the source of the money. Google stated it is working with law enforcement, that the employee accessed marketing material through a tool available to all employees, and that using confidential information to place bets violates company policies. Google placed the employee on leave and said it will take appropriate action. Prediction markets have faced repeated insider-trading allegations, leading Polymarket to adopt new rules in March to reduce such activity.
"A federal criminal complaint has charged Spagnuolo with commodities fraud, wire fraud and money laundering. He allegedly earned $1.2 million after betting that the top-searched person on Google for 2025 would be singer d4vd, then tried to hide the source of his sudden windfall."
"A Google spokesperson shared the following statement with ABC News regarding the case: “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.”"
"Insider trading has been making headlines with some regularity on prediction markets. Everyone from an employee of YouTuber MrBeast to political candidates to military personnel have tried to turn privileged information into money on these platforms. Some people have allegedly gotten up to even stranger hijinks to try and scam the bets."
"Polymarket adopted new rules in March specifically to cut down on insider trading, but only time will tell whether the policies are effective."
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