Michele Spagnuolo's lawyers filed a motion on Wednesday to dismiss insider trading charges involving the prediction market Polymarket. The defense argues that the wagers were gambling activity rather than swaps, which would place the Google engineer outside the jurisdiction of the Commodity Exchange Act.

The filing follows allegations that Spagnuolo made $1.2M through trades based on nonpublic information. While the lawyers do not deny the trades occurred, they contend that the Switzerland-based employee is not subject to US law because Polymarket's bets are not regulated financial instruments.