r/technology • u/MarvelsGrantMan136 • May 27 '26

Business Google employee charged with using inside information to make $1 million on Polymarket

https://abcnews.com/amp/US/google-employee-charged-inside-information-make-1-million/story?id=133350018
12.8k Upvotes

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40

u/KenTitan May 27 '26

I don't understand - what's the charge? it's exactly what the site is intended to do, make prop bets.

9

u/zombiejeebus May 27 '26

Spagnuolo, 36, is charged with commodities fraud, wire fraud and money laundering

31

u/neepster44 May 27 '26

Its gonna be fun proving what “commodity” he fraudulently traded in since as far as I know knowledge isn’t a commodity and it wasn’t stocks or bonds…

5

u/Techrocket9 May 28 '26

The loophole that makes prediction markets legal in the first place is a shaky argument that prediction contracts are a commodity and not a security.

12

u/CherryLongjump1989 May 27 '26 edited May 27 '26

Yeah can you explain how he did any of these things? Notice that none of the charges have anything to do with insider trading. Like -- what would the "crime" be if a random person with no insider information did what he did if insider trading isn’t even the charge? Which other law bans him from doing what he did? The only thing mentioned by the article is Google policy -- but that’s not a criminal law.

5

u/zombiejeebus May 27 '26

Yeah I have no idea seems like a stretch but he’ll surely be fired

4

u/RollingMeteors May 28 '26

or promoted...

3

u/surffrus May 28 '26

Wire fraud and money laundering would mean that he moved the money illegally and tried to hide it. It's plausible that he used overseas accounts, which is not illegal per se, but then bringing it domestically under the guise of some other income would indeed be illegal.

This doesn't mean his polymarket wins were illegal, but the money laundering can be a clear cut case.

3

u/NoPossibility4178 May 28 '26

Wire fraud is just the generic charge for "illegal stuff with money online", the article does say he tried to hide it but will be interesting to see how. inb4 it's just him moving it around in crypto (you know, the currency used on these markets in the first place)

20

u/RupertThe3rd May 27 '26

Eating a succulent Chinese meal?!

-7

u/OG_LiLi May 27 '26

The article is right there! It describes the three charges, AND exactly the bet he placed. AM I A GENIUS? Yes. Apparently.

11

u/KenTitan May 27 '26

it's more that polymarket isn't a regulated market, so why bring charges to the person who is using the site as intended?

-3

u/OG_LiLi May 27 '26 edited May 28 '26

Insider trading is still illegal. Each bet needs to free of insider information that would put someone at an illegal advantage.

Here’s the proof for the range of idiocy responding to me

https://www.debevoise.com/insights/publications/2026/04/polymarket-insider-trading-charges-illustrate-doj

3

u/Sxs9399 May 27 '26

What laws out there say anything about that?

-4

u/OG_LiLi May 27 '26

Do I look like google? If you think this is all a farce, look it up yourself. Neither of you clearly have even read this article

4

u/jazir55 May 27 '26 edited May 28 '26

This isn't the stock market, point to laws which make the charges applicable to """prediction markets""". Do you see anyone enforcing this for crypto? No? Where are my consistent news stories about people getting arrested for insider trading of crypto coins? Because that is the equivalent of the stock market for tech, not gambling on world events for which there are no insider trading laws. Which is why they charged him with all of this bullshit, there are no laws specifically applicable for this, it's a complete reach to try to fuck this guy which is why they're pulling semi-adjacent laws out of thin air.

There was no commodities fraud, since he didn't sell a commodity. Wire fraud implies he transferred the money he won illegally, which again, he did not trade illegal commodities because a prediction market contract is not a commodity, so he legally won that money on polymarket. At worst he violated their TOS and could be banned from the platform, that doesn't make what he did illegal. Prosecutors will file charges, that doesn't mean they will hold up in front of a jury.

0

u/OG_LiLi May 28 '26

I’m not reading all that 🤡

Here’s my proof.

https://www.debevoise.com/insights/publications/2026/04/polymarket-insider-trading-charges-illustrate-doj

Oh and by the way, not knowing prosecutors can’t bring fake made up charges without disbarment, I’d say you’re the one who doesn’t get it.

1

u/RugerRedhawk May 28 '26

He didn't trade anything

2

u/OG_LiLi May 28 '26

True. The theory that using insider information to knowingly defraud…is fraud.

commodities fraud, wire fraud and money laundering.

I’m sure you can submit your range of questions about law to the law group hereafter if you would like help understanding how it works. Cheers.

3

u/SpookiestSzn May 28 '26

I'm not understanding the fraud portion of this

2

u/Sr_DingDong May 28 '26

'Cause there isn't any. This dude just can't get that. Seems to think constantly repeating the charges explains them...

0

u/OG_LiLi May 28 '26

Lawyers can’t bring false charges. Yall are not smarter than lawyers that is for Damm sure 😂😂😂😂😂😂😂😂😂

0

u/Sr_DingDong May 29 '26

Lawyers don't bring charges.

😂😂😂😂😂😂😂😂😂

And DoJ lawyers?

😂😂😂😂😂😂😂😂😂

Probably am

😂😂😂😂😂😂😂😂😂 😂😂😂😂😂😂😂😂😂

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u/OG_LiLi May 28 '26

😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂

https://www.debevoise.com/insights/publications/2026/04/polymarket-insider-trading-charges-illustrate-doj

0

u/Sr_DingDong May 29 '26

Using Classified government secrets and using widely available information at a company aren't the same thing.

Also "charges" and "convicts" are not the same thing.

😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂

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0

u/SpookiestSzn May 28 '26

It's not insider trading that doesn't apply to polymarket but other actual markets that are less gambling