Betting fraud: Google employee rakes in $1.2 million on Polymarket
A Google developer used secret company data to place safe bets on the Polymarket crypto platform. The multi-million dollar fraud was now exposed and led to the arrest. The case highlights the problem behind the forecasting platform.
Millions in fraud by Google developers
Polymarket is currently making some headlines. The controversial platform, where you can bet on anything, such as wars, was recently even banned in Spain. Now a 36-year-old Google developer has been arrested in New York on suspicion of wire fraud and money laundering. The Italian, who works in Zurich, is said to have used insider information about his employer to place bets on the prediction platform. Between October and December 2025, the defendant placed targeted predictions under the pseudonym AlphaRaccoon. He bet on which people would take the top spots in Google’s annual review. Among other things, he bet on the singer D4vd, whose chance of winning on the platform was very low. Since the employee already knew the result, he made a profit of 1.2 million US dollars (around 1 million euros).
Covered tracks
How ABC News reported, the man used an internal tool accessible to all employees. Google classified the behavior as a serious policy violation and immediately placed the employee on leave. The accused pleaded not guilty in court and was initially released on bail of 2.25 million US dollars (around 1.9 million euros). To cover his tracks, the developer deleted his Polymarket account after winning and moved the winnings from his digital wallet in the form of cryptocurrency. However, blockchain transactions are publicly visible, which is why observers suspected an insider behind the account early on. The hit rate for the unlikely events was too high to be based on pure chance.
Second case of insider trading
The current incident is the second criminal trial involving the crypto platform. A US soldier was previously indicted for using secret military information to bet on political developments in Venezuela. A US congressional committee is currently investigating how the platform can check its users and prevent illegal trading. The operators of Polymarket say they are cooperating closely with the investigative authorities. The company has now tightened its internal guidelines. The management announced technical adjustments in order to identify and report abnormalities in betting more quickly in the future.
