Polymarket User Earns $400K Betting on ZachXBT Probe

What to Know

$400,000 — One Polymarket bettor pocketed roughly $400K from wagers tied to ZachXBT's insider trading investigation
$40 million — Polymarket users collectively staked nearly $40M speculating on which crypto company ZachXBT would expose
CFTC Chair Michael Selig asserted exclusive jurisdiction over prediction markets last week, warning state-level challengers would face legal action

Polymarket users who wagered on the outcome of a ZachXBT insider trading investigation walked away with significant payouts on Thursday, with one bettor pocketing roughly $400,000 after the pseudonymous onchain investigator named trading platform Axiom as the target of his probe.

ZachXBT Exposes Axiom Insider Trading

ZachXBT, whose X account reaches 977,500 followers, announced on Thursday that Axiom employee Broox Bauer and others had allegedly engaged in insider trading activity at the crypto trading platform since early 2025. The onchain detective disclosed that Bauer reportedly leveraged internal tools to access sensitive user details, enabling him to track private wallet activity for personal gain.

ZachXBT also shared audio recordings connected to the investigation, in which an individual he identified as Bauer purportedly claimed to have the ability to monitor Axiom users.

Axiom Responds to the Allegations

In a post published shortly after the revelation, Axiom said it was "shocked and disappointed" by the findings. The company stated it had revoked access to the tools in question and vowed to continue investigating the matter internally.

We have removed access to these tools and will continue to investigate and hold the offending parties responsible. This does not represent us as a team, we have always tried to put the user first.
— Axiom, official statement

How Much Did Polymarket Users Win?

The investigation drew massive interest on prediction markets, with Polymarket users staking close to $40 million in the leadup to Thursday's announcement. One individual who placed separate wagers on a related event contract walked away with approximately $400,000 in profit, according to platform data.

Beyond that single windfall, more than $9.7 million changed hands on the platform's contract titled "Which crypto company will ZachXBT expose for insider trading," with the majority of bettors correctly predicting Axiom as the answer.

What This Means for Prediction Markets

The payouts arrive as US policymakers intensify scrutiny of prediction market platforms. Commodity Futures Trading Commission Chair Michael Selig declared last week that the CFTC holds exclusive jurisdiction over prediction markets, pushing back against multiple state-level authorities that have targeted platforms such as Polymarket and Kalshi over sports betting concerns.

Selig cautioned that any state-level entities attempting to challenge the federal agency's authority over the sector would be met with legal action. The prediction market space continues to expand even amid this regulatory uncertainty, as evidenced by the tens of millions wagered on the ZachXBT investigation alone.