FBI says Google engineer used internal search data to win $1.2 million on Polymarket
The U.S. Federal Bureau of Investigation (FBI) filed a complaint against a Google engineer alleging that he used internal search data to win 1.2 million dollars on the Polymarket platform. According to Ars Technica, the 32-year-old engineer Hari Krishnan began working in Google's Search Analytics team in late 2024. The indictment said Krishnan, in this position, accessed Google's internal query traffic data, and that this data enabled him to know the outcomes of Polymarket bets in advance.
FBI Special Agent Sarah Mitchell's case file states, 'The defendant was able to observe sudden spikes in query traffic for specific topics that the public rarely searches for in Google's internal systems. These spikes signalled in advance that public attention was increasing on those topics and therefore that an event was likely to occur.' According to the case, Krishnan used this information to bet on sports, politics, entertainment and technology events on Polymarket.
Polymarket is a prediction market platform where users can bet on real-world events. Its operating principle is that bet outcomes are tied to genuine variables of public events. Because Krishnan, according to the FBI, had inside knowledge that certain events were going to occur, his probability of winning bets on Polymarket became very high.
Google spokesperson Maria Sanchez told Ars Technica, 'Google employees' use of internal data is a clear violation of the company's privacy policy. We do not support Krishnan's activities and are cooperating with the FBI investigation.' Sanchez added that Krishnan left his position on 28 May.
FBI special agent Jason Park commented to Ars Technica, 'The transfer of internal search data of a company like Google to prediction markets where the public speculates is a significant boundary violation regarding the ethics of information exchange in the United States.' Park said the case represented 'a significant precedent.'
U.S. Commodity Futures Trading Commission (CFTC) spokesperson Steve Adamske told Ars Technica, 'Prediction markets such as Polymarket are outside federal regulation. However, cases of 'inside information' abuse like Krishnan's may accelerate the CFTC's process to create a new regulation covering prediction markets.' The CFTC is preparing a proposal to bring prediction markets under federal regulation in 2027.
Speaker of the House Mike Johnson released a statement supporting federal regulation of prediction markets following the FBI's case. 'Prediction markets and the insider trading issue will be an important topic for the U.S. fiscal year 2026 legislative discussions,' he said. Johnson proposed that the Senate Banking Committee debate the matter in September 2026.
Krishnan's attorney David Goldberg told Ars Technica, 'My client had access rights to Google internal systems, and there is no legal prohibition on personal use of this data. We expect the case to be carefully evaluated in federal court.' Goldberg added that Krishnan was released on bail after his arrest on 28 May.
The FBI's investigation also covers other Google employees trading on Polymarket. According to Ars Technica, the investigation continues into whether at least six other employees similarly used Google internal data to bet on prediction markets. The FBI spokesperson said the investigation 'will be completed within the next six months.'
This article is a technology and legal news report; it should not be read as investment, gambling or personal legal advice on Polymarket, Google or any other company. For all your legal decisions, please consult a licensed attorney.