CoinDesk reported that US prosecutors arrested and indicted a Google security engineer on charges of insider trading on Polymarket. Google engineer Michele Spagnuolo allegedly used a non-public internal Google tool to identify a list of the most searched individuals in 2025 and then placed bets based on this information. Prosecutors believe he illegally used data unavailable to the public to gain over $1.2 million in illicit profits. Furthermore, it was investigated that he attempted to conceal the source of the funds to launder the proceeds and ultimately transferred the funds to a payment processing account in Italy. This arrest and indictment by US prosecutors mark the second such case related to insider trading in prediction markets, following the arrest of a US serviceman who had bet on the Venezuela presidential operation.
