GoKawiilGoogle engineer's lawyers argue Polymarket bets aren't regulated swaps
Michele Spagnuolo, the Google engineer charged with insider trading over Polymarket wagers, has filed a motion to dismiss the case. His attorneys don't dispute he profited using internal Google information, but argue his bets—including one on singer D4vd becoming Google's most-searched person of 2025—were unregulated gambling, not financial instruments covered by the Commodities Exchange Act.
GoKawiil's interpretation of the reporting above, not reported fact.
The defense strategy taps into a broader, unresolved legal fight over whether prediction-market wagers count as regulated swaps or as gambling under state law, a distinction with major consequences for how platforms like Polymarket can operate in the US. If Spagnuolo succeeds, it could weaken federal prosecutors' ability to bring insider-trading-style charges against prediction market users nationwide.
- Spagnuolo's lawyers don't deny he used internal Google data to profit on Polymarket bets.
- Their defense hinges on classifying the wagers as gambling rather than regulated financial swaps.
- The case intersects with a wider battle between state regulators and federal authorities over prediction market oversight.
Source: wired.com — Kate Knibbs, 2026-08-27
Published there as: “Google Engineer Accused of Polymarket Insider Trading Says He Was Just Gambling”
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