Michele Spagnuolo, a Google software engineer, has been arrested and charged with insider trading after allegedly using non-public company data to earn $1.2 million on the decentralized prediction market Polymarket. The arrest marks one of the first federal insider trading cases involving a decentralized platform. Spagnuolo, 36, was taken into custody on May 27 following the unsealing of a federal complaint in the Southern District of New York. He faces charges of commodities fraud, wire fraud, and money laundering, and was released on a $2.25 million bond. Between October and December 2025, Spagnuolo reportedly placed 16 large bets on Polymarket using internal data from Google's “Year in Search 2025” report, which was publicly released on December 4, 2025. His bets, including a prediction that artist d4vd would be the top-searched person of 2025, resulted in significant profits. The wallet linked to these activities, "AlphaRaccoon," had been flagged for its high accuracy rate in Google-related markets. This case follows a similar investigation involving a US Army Master Sergeant, highlighting increased scrutiny on prediction markets by federal authorities.