Federal prosecutors charged a Google software engineer with insider trading related to bets placed on prediction market platform Polymarket. The engineer allegedly profited more than $1 million by trading on non-public information tied to one of last year's most popular Internet searches.

The case centers on trades made ahead of major search trends that moved markets on Polymarket, a platform where users wager on outcomes of real-world events. Prosecutors claim the engineer used confidential Google data to inform these bets, violating securities laws that prohibit trading on material, non-public information.

Insider trading cases involving tech workers have become more common as regulators scrutinize how employees might exploit access to sensitive data. The $1 million figure underscores the significant profits allegedly generated from this misconduct, potentially triggering enhanced penalties if convicted.

This case highlights growing regulatory focus on prediction markets and how traditional securities laws apply to newer trading platforms. It sends a warning to tech employees about the risks of leveraging confidential information, even on alternative venues like Polymarket.