Google engineer sells inside info on elections and oil markets for $1.2 million
A Google engineer, Michele Spagnuolo, allegedly leveraged his privileged access to company data to make a staggering $1.2 million betting on the outcomes of events ranging from T-Mobile’s earnings to the war in Iran – a clear case of insider trading.
Prediction markets fuel illegal gains
The scheme, executed through the Polymarket and Kalshi apps, allowed Spagnuolo to exploit confidential Google trends and predictions to capitalize on market fluctuations. He wasn’t just speculating on broad trends; he was meticulously analyzing and betting on specific events, demonstrating a disturbing level of access and disregard for company policy.
The ‘alpharaccoon’ strategy
Using the pseudonym ‘AlphaRaccoon,’ Spagnuolo utilized his position within Google to gain access to classified internal data – specifically, information on Google’s most searched terms for 2025. This provided him with an unfair advantage in the prediction markets, enabling him to make highly profitable bets on figures like d4vd, Pope Leo, and Donald Trump.
A cascade of bets, a mountain of profit
Between October 15th and December 4th, 2025, Spagnuolo placed a remarkable $2,754,092 in wagers – a dizzying sum fueled by his illicit access. His bets encompassed everything from the likelihood of d4vd topping Google’s search results to predicting the outcome of geopolitical events. He was essentially gambling with secrets, and the results were lucrative, netting him over $1.2 million in unlawful profits.
Legal fallout and a stark warning
The FBI has charged Spagnuolo with commodities fraud, wire fraud, and money laundering. He’s currently under bail, restricted to $2.2 million, highlighting the severe consequences of abusing corporate information. Google has placed him on administrative leave, asserting that his actions represent a serious breach of company policy. This case serves as a potent reminder: exploiting internal knowledge for personal gain carries significant legal and reputational risks.
Beyond google – a growing threat
Spagnuolo’s case isn’t an isolated incident. Just last month, a U.S. special forces soldier was charged with insider trading after utilizing confidential information about the capture of Nicolás Maduro to secure a $400,000 profit on Polymarket. The rise of these prediction markets, while offering novel investment opportunities, undeniably creates a tempting environment for those seeking to leverage privileged information – a vulnerability that authorities must actively monitor and prosecute.