A Google engineer arrested on charges of insider trading tied to Polymarket is defending his actions as simple gambling. Michele Spagnuolo, based in Switzerland, faces allegations that he used confidential information to trade on the prediction market platform.
Prosecutors claim Spagnuolo placed bets based on non-public details about upcoming company announcements. The engineer maintains his trades were part of a personal gambling habit, not a scheme to exploit secret data.
The case centers on whether Polymarket activity falls under US securities law. Lawyers for Spagnuolo argue that gambling, unlike securities trading, sits outside federal jurisdiction.
Polymarket allows users to wager on event outcomes, from election results to corporate news. The platform has grown rapidly, drawing both retail bettors and scrutiny from regulators.
Authorities allege Spagnuolo profited from trades linked to at least two major tech firms. Specific company names remain sealed in court documents.
The defense intends to challenge the legal framing of the charges. They plan to argue that Polymarket contracts do not qualify as securities under current law.
A court hearing is scheduled for next month in the US District Court where the case was filed. Spagnuolo remains free on bail while proceedings continue.
Google has not commented publicly on the arrest. The company confirmed Spagnuolo is on administrative leave pending the legal outcome.
Legal experts say the case could set a precedent for how prediction markets are regulated. A ruling in favor of the defense might limit federal oversight of similar platforms.
The outcome may also influence how tech employees handle personal trading activities. Companies often impose strict policies on sharing or using corporate information for profit.
