Engineer Accused of Rigging Bets With Google Secrets

Michele Spagnuolo, a 36-year-old Google software engineer, has been charged by the U.S. Justice Department for allegedly rigging bets on Polymarket using confidential insider information. The complaint unsealed on Wednesday details how Spagnuolo allegedly used non-public data to bet on obscure candidates topping Google's most-searched list.

He reportedly earned $1.2 million by placing profitable bets, including one on musician D4vd, who unexpectedly became the most-searched person of the year. Spagnuolo also allegedly bet on rapper Kendrick Lamar based on internal Google data. Prosecutors emphasized their commitment to prosecuting corporate insiders who misuse confidential information for profit in prediction markets.

Google stated that using confidential information for betting is a serious breach of company policy and has placed Spagnuolo on leave. Polymarket confirmed its cooperation with law enforcement in investigating Spagnuolo's activities, noting it's the first such cooperation leading to insider trading charges in the U.S. This case follows a similar instance in April where a U.S. Army soldier was charged for using classified information on Polymarket.

Spagnuolo, an Italian citizen residing in Switzerland, faces charges filed in federal court in Manhattan. U.S. Attorney Jay Clayton affirmed that such greed-driven conduct compromises market integrity and will be pursued.