The U.S. Commodity Futures Trading Commission (CFTC) filed a civil complaint on January 27, 2025, against Michele Spagnuolo, a Google software engineer based in Switzerland, alleging insider trading on prediction market platform Polymarket. Spagnuolo allegedly used non-public information about Google's official "Year in Search 2025" results to trade on at least 23 contracts related to top searched persons, earning $1.2 million through an account named "AlphaRaccoon" between October and December 2025. The action represents the first major enforcement case targeting insider trading in prediction markets, a sector that has grown rapidly alongside crypto-based platforms.
Allegations Detail Information Access and Trading Activity
According to the CFTC complaint filed in the U.S. District Court for the Southern District of New York, Spagnuolo accessed sensitive non-public information related to Google's annual "Year in Search" rankings prior to their official release. The regulator alleges he used this data to trade on Polymarket contracts titled "Searched Person on Google this year" and "Top 5 Most Searched People on Google 2025," among others. The CFTC stated Spagnuolo achieved a "perfect level" accuracy rate in his trades from October through December 2025, ultimately generating $1.2 million in profits via the AlphaRaccoon account.
CFTC Officials Emphasize Zero-Tolerance Enforcement Stance
"The Commission will not tolerate fraud, manipulation, or insider trading, regardless of platform," said CFTC Chair Michael S. Selig in the January 27 statement. "This action demonstrates our commitment to protecting market integrity within prediction markets." CFTC Division of Enforcement Director David I. Miller added: "Employees entrusted with confidential business information must not exploit it for private gain. The CFTC will continue to pursue illegal use of inside information in prediction markets and other markets under our jurisdiction."
Parallel Criminal Charges Filed Same Day
The U.S. Attorney's Office for the Southern District of New York announced parallel criminal charges against Spagnuolo on January 27, 2025. Prosecutors applied charges similar to those in the CFTC's civil complaint, according to the announcement.
