Twelve cryptocurrency wallets reportedly profited more than $1 million by predicting which company onchain investigator ZachXBT would expose for alleged insider trading. The wallets collectively invested nearly $400,000 and generated $1.42 million in returns, according to blockchain analytics firm Lookonchain.
The largest gain came from a wallet labeled “predictorxyz,” which turned $65,800 into $477,176. Several smaller wallets saw even higher percentage returns, including one yielding 926% on less than $5,000.
ZachXBT Investigation Points to Employee Misconduct
ZachXBT identified Axiom, a Solana-based trading platform, as the focus of the investigation. According to findings, employees had unusually broad access to sensitive user data.
This access included transaction histories, linked accounts, and wallet nicknames. Investigators alleged the platform lacked proper monitoring or internal controls to prevent potential abuse.
A key figure named in the exposé is Broox Bauer, a business development employee. Bauer and associates allegedly used internal tools to track customer wallets, giving them significant trading advantages.
Evidence suggests the schemes started shortly after Axiom launched in January 2025. In a recorded call, Bauer reportedly outlined plans to help an associate profit $200,000 using privileged access.
Market Reactions and Insider Trading Concerns
The suspected insider activity highlights growing concerns over crypto market integrity. Platforms like Polymarket and Kalshi have drawn attention for prediction markets that allow participants to bet on future disclosures.
In this case, Axiom had approximately a 30% chance of being named in the exposé before it was released. Analysts note that friends or associates of company employees could have exploited early knowledge to place profitable bets.
Regulatory attention is also increasing. Last month, US lawmakers proposed the Public Integrity in Financial Prediction Markets Act of 2026 to restrict officials from trading on policy-related prediction markets. Additionally, a lawsuit recently accused Jane Street of profiting from nonpublic information during Terraform Labs’ collapse.
Axiom’s Growth and Profitability
Despite the controversy, Axiom remains a highly profitable company. Founded in 2024 by Henry Zhang (Mist) and Preston Ellis (Cal), the platform went through Y Combinator’s Winter 2025 batch.
Early access users rapidly adopted the platform, contributing to over $390 million in revenue to date, according to DefiLlama. The allegations now place a spotlight on both the platform’s rapid growth and the potential risks of inadequate internal controls.
Source: https://coinpaper.com/14974/suspected-insider-traders-make-over-1-million-on-axiom-probe
