Google engineer uses internal data to arbitrage $1.2 million on Polymarket—does this count as alpha or insider trading?

The Southern District of New York prosecutors accuse Google security engineer Michele Spagnuolo of using material non-public information to bet on markets related to Google user searches on Polymarket and profit from it; he tracked the hottest search lists for 2025 through internal tools and transferred approximately 3.8 million USDC. His associated account AlphaRaccoon also used internal tools to bet that D4vd would become one of the most searched people in late November. Funds were transferred through multiple steps, with some entering accounts at an Italian payment processing institution. Spagnuolo profited over $1.2 million and now faces charges of commodities fraud, telecommunications fraud, and money laundering.