Google engineer charged with insider trading using confidential data

As noted by CyberScoop, a Google security engineer has been arrested and charged with insider trading for allegedly using confidential company information to place bets on a prediction marketplace. The charges highlight the risks associated with employees misusing nonpublic data for personal financial gain.

Michele Spagnuolo, 36, a Google security engineer since 2014, is accused of leveraging internal access to Google's "Year in Search" data to make profitable trades on the Polymarket platform. He allegedly placed bets on search trends, netting over $1.2 million. The Justice Department charged Spagnuolo with violating the Commodity Exchange Act, wire fraud, and money laundering, carrying a potential 50-year sentence. The Commodity Futures Trading Commission also filed a civil complaint seeking penalties and bans.

Google stated that while Spagnuolo accessed marketing material using a standard tool, using confidential information for betting violates company policy. The company has placed him on leave. Spagnuolo reportedly took steps to conceal his activities, including using a cryptocurrency swapping service and changing his username after speculation arose online.

Source: CyberScoop