Crypto: Suspected Insider Wallets Rack Up $1.2m Betting On Zachxbt’s Axiom...
The top eight wallets on Polymarket netted over $1.2 million by betting on ZachXBT’s investigation into Axiom, raising insider trading concerns among blockchain researchers.
A small group of crypto wallets won more than $1.2 million betting on a Polymarket contract tied to an onchain investigation into decentralized finance (DeFi) trading platform Axiom, fueling fresh concerns that prediction markets can reward people with advance knowledge of market-moving disclosures.
The eight most profitable wallets on the market collectively made about $1.2 million, according to trading data compiled on Dune. The same dataset showed more than 50 wallets posting combined losses of roughly $1.23 million, while two wallets lost about $366,000.
Eight out of the top 10 wallets are likely insider addresses, judging by their onchain transaction patterns, according to onchain researcher Defioasis. “There are 3 addresses that achieved profits exceeding $100,000, all of which are insider addresses that traded only this single market,” said the researcher in a Friday X post.
ZachXBT released the much-anticipated investigation on Thursday, alleging that Axiom employee Broox Bauer and others had been responsible for insider trading activity since early 2025.
In an X response to the incident, Axiom said it was “shocked and disappointed” in the news and that it had removed access to the tools that were used in the alleged insider trading.
Related: Analysts reject Jane Street ‘10 a.m. dump’ claims, say Bitcoin isn’t easily manipulated
Insider trading concerns in prediction markets mounted in early January after a highly profitable bet on the removal of Venezuelan President Nicholas Maduro by the US raised eyebrows.
On Jan. 3, a Polymarket account placed a bet on a contract predicting that Maduro would be removed from office just hours before US forces captured him in a military operation, netting the user about $400,000 in profit.
US lawmakers have since proposed legislation aimed at restricting political prediction market trading by government officials, adding to the regulatory spotlight on the sector.
Source: CoinTelegraph
