U.S. charges Google engineer over PolymarketGoogle engineer over Polymarket insider bets
U.S. prosecutors on May 28 charged Google software engineer Michele Spagnuolo with insider trading, saying he used confidential company information to place bets on the prediction market Polymarket.
The complaint alleges he profited by more than $1 million from trades tied to Google search and marketing data. The case matters because it tests how U.S. law applies to prediction markets and the handling of nonpublic corporate information.
U.S. Prosecutors
Federal prosecutors say the case shows that corporate insiders cannot use confidential business information to profit in markets. They describe the alleged conduct as a fraud scheme that undermines market integrity.
Google says the employee was placed on leave and that it is cooperating with law enforcement. The company says using confidential information to place bets is a serious breach of policy.
Polymarket
Polymarket has argued that its blockchain-based system leaves a trace and can help identify suspicious trading. The company says it has cooperated with investigators in the case.
- Prediction markets were once largely academic tools before becoming a retail betting niche online.
- Blockchain records can make every trade permanently visible, even when users try to stay anonymous.
- The Southern District of New York has long been a key venue for high-profile securities prosecutions.
