GoKawiilGoogle Engineer Seeks Dismissal of Polymarket Insider Trading Charges
Michele Spagnuolo, the Google engineer charged with commodities fraud, wire fraud and money laundering over Polymarket bets made using the alias 'AlphaRaccoon,' has filed a motion to dismiss. His lawyers argue the wagers, which reportedly netted him over $1.2 million including a correct bet on singer D4vd, are informal gambling rather than regulated financial swaps, and that U.S. authorities lack jurisdiction since he is a non-U.S. citizen.
GoKawiil's interpretation of the reporting above, not reported fact.
The case hinges on whether prediction market bets count as regulated commodities swaps, a question that could reshape oversight of platforms like Polymarket nationwide. Legal experts suggest this jurisdictional and definitional dispute could eventually reach the Supreme Court, affecting how prediction markets are policed and whether insider trading laws apply to them at all.
- Spagnuolo's defense claims his Polymarket bets were gambling, not regulated financial swaps.
- His lawyers also argue the U.S. lacks jurisdiction since he is not an American citizen.
- The case could set a precedent for how prediction markets are legally classified nationally.
Source: yro.slashdot.org, 2026-09-03
Published there as: “Google Engineer Accused of Polymarket Insider Trading Says He Was Just Gambling”
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