The U.S. Justice Department has charged a Google software engineer with insider trading on the prediction market Polymarket, accusing him of using confidential company data to place bets that netted $1.2 million.
Michele Spagnuolo, a 36-year-old Italian citizen living in Switzerland, allegedly used insider information to bet on long-shot candidates for Google's most-searched list - including indie musician D4vd, who topped the list after being arrested for murder.
According to the complaint unsealed in Manhattan federal court, Spagnuolo - operating under the account "AlphaRaccoon" - also placed insider bets on rapper Kendrick Lamar and others before Google publicly released its end-of-year data.
U.S. Attorney Jay Clayton said prosecutors will pursue corporate insiders who use confidential information to profit in prediction markets, calling it "greed-driven conduct."
Google has placed Spagnuolo on leave and says it is cooperating with law enforcement.