Google Security Engineer Arrested in Million-Dollar Polymarket Trading Scheme
Original: Google Security Engineer Arrested in Million-Dollar Polymarket Trading Scheme
Why This Matters
First tech worker arrested for prediction market insider trading, highlighting regulatory scrutiny of emerging platforms
Michele Spagnuolo, a Google security engineer, was arrested for allegedly using confidential Google Search data to make $1.2 million on Polymarket prediction markets between October-December 2025. He faces commodities fraud, wire fraud, and money laundering charges.
Michele Spagnuolo, 36, an Italian citizen who has worked at Google's Zurich office since 2014, was arrested in New York on charges of using internal Google data for illegal trading on Polymarket. According to prosecutors, he made over $1 million by correctly predicting Google's most-searched person of 2025 would be singer D4vd, who became notorious after being suspected of murder. FBI agent Brandon Racz stated Spagnuolo knew outcomes before the public because he accessed Google's confidential internal data. This marks the second known US arrest for prediction market fraud, following an Army officer's arrest in April. Google has placed Spagnuolo on leave, calling his actions a serious policy breach.