A Google software engineer, Michele Spagnuolo, has been charged with insider trading for allegedly using confidential company data to profit on Polymarket, a leading prediction market platform. Spagnuolo, an Italian citizen residing in Switzerland, reportedly made $1.2 million by betting on markets tied to Google's internal data, risking $2.75 million across 23 prediction markets with near-perfect accuracy from October to December 2025. The charges, unsealed by the US Attorney’s Office for the Southern District of New York, include commodities fraud, wire fraud, and money laundering, carrying a combined maximum sentence of 50 years. Spagnuolo also faces a civil enforcement action from the Commodity Futures Trading Commission (CFTC), which seeks restitution, disgorgement of profits, and other penalties. This case highlights ongoing regulatory scrutiny of prediction markets and the CFTC's jurisdiction in this area.