CFTC Sues Google Employee Over $1.2M in Polymarket Profits

A Google employee is facing civil action from the Commodity Futures Trading Commission (CFTC) after allegedly using confidential company information to generate more than $1.2 million trading on Polymarket.

The complaint, filed in federal court in New York, accuses Michele Spagnuolo of accessing internal Google data tied to the company's 2025 Year in Search rankings and using that information to place highly successful trades on Polymarket between October and December 2025.

According to the CFTC, Spagnuolo traded under the username "AlphaRaccoon" and participated in at least 23 prediction markets linked to Google's annual search rankings. Regulators claim he used non-public information available through his employment to build a near-perfect trading record before the results became public.

The agency is seeking restitution, civil penalties, and a permanent ban preventing Spagnuolo from participating in markets under its jurisdiction.

Trades Centered on Google's Year in Search Data

Federal regulators allege Spagnuolo gained access to confidential information beginning in mid-October and used it to trade markets tied directly to Google's upcoming Year in Search results.

The contracts covered a wide range of categories, including politics, entertainment, sports, and culture. Among the markets cited in the complaint were predictions involving Donald Trump, Kendrick Lamar, Taylor Swift, Sydney Sweeney, Elon Musk, Pope Leo XIV, Squid Game, and several other public figures and topics expected to rank highly in Google's annual search report.

Because the underlying data had not yet been released publicly, the CFTC argues that Spagnuolo held a significant informational advantage over other traders participating in those markets.

Google confirmed it is cooperating with authorities and stated that using confidential company information for personal financial gain violates company policy. The company has reportedly placed the employee on leave while the investigation continues.

Second Insider Trading Case Linked to Polymarket This Year

The case follows another major CFTC enforcement action announced earlier this year.

In April, regulators accused US Army soldier Gannon Ken Van Dyke of using classified military information to place profitable Polymarket trades tied to developments involving Venezuelan President Nicolás Maduro. Authorities allege Van Dyke earned more than $400,000 through those positions.

Unlike the Google case, the allegations against Van Dyke also carry criminal charges. Prosecutors are pursuing counts including wire fraud and violations of the Commodity Exchange Act, exposing him to potentially decades in prison if convicted.

The two cases have quickly become some of the highest-profile enforcement actions involving prediction markets since the sector began attracting mainstream attention.

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Polymarket Highlights Enforcement Efforts

Following news of the CFTC complaint, Polymarket pointed to its own market surveillance systems as part of the investigation.

The company stated on social media that its integrity infrastructure flagged the trader and referred the matter to law enforcement. Polymarket also noted that both arrests tied to insider-trading allegations in prediction markets this year originated from referrals made by the platform.

The company has increasingly emphasized transparency as regulators and lawmakers continue examining prediction markets and their growing role within the broader betting and financial trading landscape.

For the CFTC, the case serves as another signal that insider trading rules and market manipulation concerns are becoming a larger focus as event-contract markets continue to expand.