A Google software engineer from Italy was arrested on May 27, 2026, for using secret company data to win $1.2 million in bets on the prediction market Polymarket. The bets were tied to whether singer D4vd would become the most searched person on Google after being arrested for murder. The case has drawn attention because it mixes true crime, finance, and corporate espionage.
Michele Spagnuolo, 36, worked for Google for over 12 years as an engineer focused on information security. He lived in Switzerland but was brought to a federal court in New York after the FBI traced his betting accounts. He now faces charges of commodities fraud, wire fraud, and money laundering.
How a Google Employee Used Secret Data to Beat the Market
Spagnuolo reportedly used an online name AlphaRaccoon on Polymarket. Between October and December 2025, he placed roughly $2.7 million in bets related to Google’s “Year in Search” data. These bets were not about sports or elections but about who would be the top-searched person of the year.
Prosecutors say he accessed confidential internal marketing material that showed search trends before Google released the data to the public on December 4, 2025. Using this non-public information, he knew exactly who was winning the search race while other bettors were guessing blindly.
“Unlike the counterparties to his trades, Spagnuolo knew the outcome of these wagers before the trading public did because he had accessed Google’s confidential, commercially valuable internal data,” authorities claimed in the criminal complaint.
The D4vd Bet That Turned $5 Into a Fortune
The most shocking bet involved musician D4vd, whose real name is David Anthony Burke. D4vd is an indie pop singer who was arrested in April 2025 and charged with the murder of 14-year-old Celeste Rivas Hernandez. He has pleaded not guilty to the charges.
When D4vd was arrested, public interest exploded. According to the court papers, Polymarket’s odds of D4vd becoming the most searched person on Google were listed as “near-zero probability.” The market did not expect a relatively unknown musician to beat out major celebrities.
Spagnuolo allegedly saw internal Google data in November 2025 that showed D4vd was actually leading the search rankings. He reportedly placed a $381 bet that D4vd would rank among the top searched people and a separate $5 bet that D4vd would be the number one most searched person.
When Google released its official Year in Search results on December 4, 2025, D4vd was confirmed as the top-searched person of the year. Spagnuolo’s small bets reportedly paid out over $1.2 million in total winnings across all his trades.
From Kendrick Lamar to D4vd: Changing Bets as the Data Shifted
The criminal complaint reveals that Spagnuolo did not start out betting on D4vd. In October 2025, he reportedly placed a bet that rapper Kendrick Lamar would be the most searched person. At that time, internal Google data showed Lamar was on track to win.
But as the search data changed and D4vd’s arrest drove massive traffic, Spagnuolo allegedly adjusted his bets. He placed new wagers on D4vd while still keeping his old ones. This is the key piece of evidence for prosecutors. They say he did not guess correctly. He watched the numbers change in real time inside Google’s systems and bet accordingly.
Spagnuolo also reportedly placed large “no” bets against other public figures. He wagered more than $613,000 that Pope Leo would not be the most searched person and over $500,000 that US President Donald Trump would not take the top spot. These were safe bets if he already knew D4vd was winning.
How the FBI Traced AlphaRaccoon to Michele Spagnuolo
Polymarket operates on blockchain technology, which uses cryptocurrency. Every transaction leaves a permanent, public record. While Spagnuolo allegedly used multiple cryptocurrency accounts to hide his tracks, the FBI was able to connect them.
Investigators reportedly found one account that Spagnuolo had opened using his Italian identification card. Once they had his real name, they could link the other accounts to him through transaction patterns and digital footprints. A Polymarket spokesperson emphasized that “blockchain trading is transparent, traceable, and bad actors leave footprints.”
The Arrest, Bond, and Federal Charges
Spagnuolo was arrested on May 27, 2026, and appeared before a federal magistrate judge in New York. He did not enter a plea at that hearing. He has since been released on a $2.25 million bond with travel restrictions.
The charges against him include commodities fraud, wire fraud, and money laundering. Each charge carries the possibility of years in federal prison if he is convicted. An attorney for Spagnuolo was not immediately listed on the court docket.
Jay Clayton, the US Attorney for the Southern District of New York, said in a statement: “Insider trading compromises the integrity of our markets, and the American people want this greed-driven conduct investigated and prosecuted.”
Google and Polymarket Respond to the Insider Trading Case
Google acted quickly after the arrest. A spokesperson confirmed that Spagnuolo has been placed on leave. The company also stated it is cooperating fully with law enforcement.
Google clarified that the employee accessed marketing material using a tool available to all employees. However, the company made it clear that using confidential information to place bets is a serious breach of its policies.
Polymarket also responded to the news. A spokesperson said the platform worked closely with authorities during the investigation. They also noted that Polymarket is the only prediction platform whose cooperation has led to insider trading charges in the United States.
Background on Prediction Markets and Insider Trading Risks
Prediction markets like Polymarket allow users to bet on the outcomes of real-world events. These can range from election results to entertainment awards to economic data. The platform has grown rapidly in recent years.
However, the industry has faced scrutiny. Last month, a US special forces soldier was charged with using classified military information to place bets on Polymarket regarding the capture of former Venezuelan President Nicolas Maduro. These back-to-back cases have raised questions about how prediction markets can prevent insider trading.
Polymarket recently rewrote its rules to clearly state that users cannot trade on contracts where they might possess confidential information or could influence the outcome of an event. Whether these rules will stop determined insiders remains unclear.
D4vd Remains in Jail as the Legal Process Continues
As the case against Spagnuolo moves forward, D4vd remains behind bars. The singer was arrested in April 2025 and is accused of murdering Celeste Rivas Hernandez, a 14-year-old girl. He has pleaded not guilty to the charges.
D4vd’s sudden rise to the top of Google’s search rankings was directly tied to the publicity surrounding his arrest and murder case. His name became one of the most searched terms on the internet almost overnight. This level of public interest created the betting opportunity that Spagnuolo allegedly exploited.
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Federal Prosecutors Send a Warning to Corporate Insiders
The charges against Spagnuolo represent an effort by federal prosecutors to apply traditional insider trading laws to new types of assets. Prediction market contracts are not stocks or bonds. But prosecutors argue that using secret corporate data to bet on them is still fraud.
The case also shows how internal company data has financial value beyond the stock market. Google’s internal search statistics, meant for marketing and planning purposes, became a tool for illegal betting. This case may lead other tech companies to tighten access to their internal trend data.
Spagnuolo is scheduled to appear in court in the coming weeks. His legal team has not yet made a public statement about the charges.
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