Federal prosecutors in New York have charged former Google software engineer Michele Spagnuolo, who allegedly used the online alias “AlphaRaccoon,” with commodities fraud, wire fraud, and money laundering after investigators said he used confidential Google search data to make more than $1.2 million on the prediction market platform Polymarket.
Authorities arrested Spagnuolo, 36, this week after a criminal complaint unsealed by the United States Attorney’s Office for the Southern District of New York accused him of exploiting internal Google search trend data before the public could access it. Prosecutors allege the Italian citizen, who lived in Switzerland and worked at Google since 2014, used inside data tied to Google’s annual “Year in Search” rankings to place highly profitable bets on Polymarket.
Spagnuolo used the “AlphaRaccoon” account to place wagers on which people would rank as Google’s most-searched figures in 2025. He has pleaded not guilty.
Google stat bets are easy when you work there
The complaint said Spagnuolo accessed Google’s internal search metrics shortly before placing the D4VD wager. At the time, Polymarket assigned almost no chance to D4vd finishing as Google’s top-searched person of the year. Prosecutors allege Spagnuolo knew otherwise because he had already reviewed Google’s confidential data.
Polymarket operates as a cryptocurrency-based prediction market where users buy and sell shares tied to future outcomes, including world events, elections, entertainment news, and sports events. Traders can profit if they correctly predict the outcome of a market before it resolves. Federal investigators said Spagnuolo used confidential search traffic data unavailable to the public to gain an unfair advantage over other traders.
Per the Associated Press, investigators said Spagnuolo later adjusted additional bets after internal Google rankings changed. In one instance, prosecutors said he shifted wagers away from rapper Kendrick Lamar and toward D4vd as updated search data showed D4vd moving ahead in Google’s rankings.
Federal prosecutors argue the conduct violated U.S. fraud and commodities laws because Spagnuolo allegedly misappropriated confidential corporate information for personal financial gain. Authorities also accuse him of laundering proceeds from the betting activity through cryptocurrency transactions designed to conceal the source and ownership of the funds.
The FBI complaint said investigators traced cryptocurrency transfers connected to the AlphaRaccoon account back to accounts and payment systems allegedly linked to Spagnuolo. Prosecutors also said online users began speculating in late 2025 that AlphaRaccoon may have been a Google insider, prompting the account to remove the “AlphaRaccoon” username and revert to a wallet address.
The case marks one of the first major U.S. criminal prosecutions tied to alleged insider trading on a prediction market platform. Regulators and prosecutors have increased scrutiny of prediction markets such as Polymarket and Kalshi as trading volumes have surged in recent years.
Google said it is cooperating with law enforcement and described the alleged conduct as a serious violation of company policy. The company placed Spagnuolo on leave following the investigation. Polymarket also said it cooperated with federal investigators.
Spagnuolo appeared before a federal magistrate judge in New York and did not enter a plea, according to reports. Prosecutors continue to investigate the broader trading activity tied to the AlphaRaccoon account. The criminal case remains pending in federal court. Spagnuolo posted a $2.25 million bond following his initial appearance before U.S. Magistrate Judge Sarah Netburn.
Published: May 29, 2026 01:00 pm