Insider Wallets Gain $1.2M Betting on ZachXBT Axiom Expose

What to Know

$1.2 million — Eight wallets profited by betting on ZachXBT's Axiom investigation via Polymarket
Three addresses each earned over $100,000 in profit and had only traded this single contract
Broox Bauer, an Axiom employee, was named in the investigation for alleged insider trading since early 2025
Polymarket faces growing regulatory pressure after being blocked in multiple countries over gambling concerns

Insider wallets collectively netted more than $1.2 million on Polymarket by wagering on a contract linked to blockchain investigator ZachXBT's probe into decentralized finance trading platform Axiom, according to trading data on Dune. The profitable cluster of eight wallets has sparked fresh insider trading allegations among onchain researchers.

How Did Insider Wallets Profit From the ZachXBT Axiom Probe?

The eight most profitable wallets on the Polymarket contract collectively earned about $1.2 million, according to trading data compiled on Dune. On the losing side, more than 50 wallets posted combined losses of roughly $1.23 million, while two wallets individually lost approximately $366,000.

Onchain researcher Defioasis flagged eight out of the top ten wallets as likely insider addresses based on their transaction patterns, according to a Friday post on X. Three of those addresses each generated profits exceeding $100,000 and had only ever traded on this single Polymarket contract, further supporting the insider trading theory.

There are 3 addresses that achieved profits exceeding $100,000, all of which are insider addresses that traded only this single market.
— Defioasis, Onchain Researcher

ZachXBT Investigation Names Axiom Employee

ZachXBT released the widely anticipated investigation on Thursday, alleging that Axiom employee Broox Bauer and others were responsible for insider trading activity on the platform dating back to early 2025. The probe detailed how certain parties exploited privileged access to internal tools to front-run trades on the DeFi platform.

Axiom responded to the allegations in a post on X, saying it was "shocked and disappointed" by the findings. The company confirmed it had immediately revoked access to the internal tools allegedly used for the insider trades, according to its official statement.

Prediction Market Insider Trading Precedents

Concerns about insider trading on prediction markets mounted in early January after a highly profitable bet on the removal of Venezuelan President Nicolas Maduro drew scrutiny. On January 3, a Polymarket account wagered on a contract predicting Maduro's ouster 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 growing regulatory spotlight on the sector.

What Does This Mean for Polymarket's Regulatory Future?

Polymarket, the largest decentralized prediction market, now faces regulatory action across multiple jurisdictions. Hungary and Portugal blocked access to the platform in January, citing forbidden gambling activities. A week earlier, Ukraine classified Polymarket's operations as unlicensed gambling under national law.

The platform has also been blocked or restricted in France, Belgium, Poland, Singapore, and Switzerland over similar gambling concerns. Each new insider trading controversy strengthens the case that prediction markets need formal oversight frameworks, potentially threatening the decentralized model behind Polymarket's rapid growth.