Federal prosecutors have charged a Google security engineer with fraud, alleging he used confidential company information to make more than $1.2 million in winning bets on the prediction market platform Polymarket.

Michele Spagnuolo is accused of accessing Google's internal search traffic data and using that information to place profitable wagers on events related to search trends in 2025. According to the unsealed federal complaint, Spagnuolo "knew the outcome of these wagers before the trading public did because he had accessed Google's confidential" information.

The charges represent one of the first major insider trading cases involving prediction markets, which allow users to bet on the outcomes of future events ranging from elections to corporate announcements. Polymarket has grown in popularity as a platform where users can trade on various predictions using cryptocurrency.

Prosecutors allege that Spagnuolo leveraged his position at Google to gain unfair advantage over other traders on the platform. The case highlights potential risks around employees at major technology companies using privileged access to internal data for personal financial gain.

The investigation was conducted by federal authorities, with the case initially reported by ABC News before the complaint was unsealed. Google has not immediately responded to requests for comment regarding the charges against its employee.