### Insider Trading Allegations **Michele Spagnuolo**, 36, appeared in the Southern District of New York on Wednesday, facing accusations of commodities fraud, wire fraud, and money laundering. The charges stem from his alleged use of confidential **Google** data to make profitable bets on **Polymarket**, a cryptocurrency-based prediction market. The Commodity Futures Trading Commission (**CFTC**) has also filed a separate civil complaint against Spagnuolo, seeking restitution, penalties, and bans on trading and registration. ### The 'AlphaRaccoon' Scheme According to the criminal complaint, Spagnuolo exploited his access to an internal **Google** software tool containing confidential 'Year in Search' data. This data, marked "Google Confidential," provides annual rankings of top trending search terms. Beginning in October 2025, Spagnuolo allegedly used a **Polymarket** account under the alias "AlphaRaccoon" to bet on whether specific individuals would appear on Google's top trending search lists. By using confidential data, he allegedly placed near-perfectly accurate bets across approximately 25 unlikely outcomes, risking roughly $2.75 million in total. After **Google** publicly announced its Year in Search results on December 4, 2025, Spagnuolo's AlphaRaccoon account reportedly collected approximately $1.2 million in USDC.e winnings. ### Tracing the Funds The FBI traced the AlphaRaccoon account to a payment processor account registered in Spagnuolo's name and linked to an Italian government identification card. After online communities on Discord and X began speculating about a Google insider, the username was removed, reverting to an alphanumeric wallet address. Prosecutors allege that Spagnuolo subsequently moved the illegal proceeds through multiple cryptocurrency-swapping services, including one designed to remove wallet addresses from the blockchain. ### Legal Ramifications "Today's charges reinforce a decades-old message: corporate insiders cannot use confidential business information to turn a profit in our markets," said U.S. Attorney **Jay Clayton**. "As alleged, Spagnuolo violated the duties he owed to his employer and used Google's confidential business information to make more than $1.2 million in trading profits on Polymarket." **CFTC** Director of Enforcement **David I. Miller** added, "Employees who are entrusted with confidential business information cannot misappropriate that information for personal financial gain." Spagnuolo faces a maximum of 10 years in prison on the commodities fraud count and 20 years each on the wire fraud and money laundering counts.