The Commodity Futures Trading Commission (CFTC) recently filed a complaint in the U.S. District Court for the Southern District of New York against Swiss resident Michele Spagnuolo, alleging insider trading on Polymarket.com.
According to the complaint, Spagnuolo was a software engineer at Google who acquired sensitive nonpublic information concerning the results of Google’s official Year in Search list for 2025. from at least October 2025 through at least December 2025, Spagnuolo purchased “yes” or “no” shares on at least 23 of the 2025 Year in Search List contracts on Polymarket.com with near-perfect accuracy.
Spagnuolo generated approximately $1.2 million in profits through his trading, according to the complaint.
“Employees who are entrusted with confidential business information cannot misappropriate that information for personal financial gain,” David Miller, CFTC director of enforcement, said. “As this and other enforcement actions show, the Division is a cop on the beat in policing the illegal use of inside information in the prediction markets and other markets within the CFTC’s jurisdiction. We will continue to take action to protect markets from insider trading and other forms of fraud, abuse, and manipulation.”
The CFTC seeks restitution, disgorgement, civil monetary penalties, trading and registration bans, and a permanent injunction against further violations of the Commodity Exchange Act and CFTC regulations.