Prediction markets like Kalshi and Polymarket have an insider-trading problem. And now it seems the U.S. Department of Justice is doing something about this illegal activity.Last month, the DOJ charged a U.S. Army soldier with profiting from Polymarket trades made using their access to classified information regarding the capture of Nicolás Maduro in Venezuela.Now, the DOJ has made another insider trading charge. This time against an engineer at Google.
You May Also Like
According to the DOJ complaint, Google engineer Michele Spagnuolo made more than $1.2 million off of Polymarket trades based on the search giant's confidential business information."Today’s charges reinforce a decades-old message: corporate insiders cannot use confidential business information to turn a profit in our markets,” U.S. Attorney Jay Clayton said in a statement. "As alleged, Spagnuolo violated the duties he owed to his employer and used Google’s confidential business information to make more than $1.2 million in trading profits on Polymarket. Insider trading compromises the integrity of our markets, and the American people want this greed-driven conduct investigated and prosecuted."
Mashable Light Speed
Spagnuolo, who has worked as a software engineer at Google for over a decade, made lucrative Polymarket trades using the alias "AlphaRaccoon," according to the complaint.Want to learn more about getting the best out of your tech? Sign up for Mashable's Top Stories and Deals newsletters today.
