Trader Nets $400K Profit on Polymarket Wagers Surrounding ZachXBT's Insider Trading Reveal
While United States regulatory authorities examine prediction market platforms more closely, numerous Polymarket participants profited from wagers regarding which insider trading case the prominent blockchain investigator would unveil.
Participants on Polymarket who placed wagers identifying an Axiom trading platform employee as the subject of ZachXBT's insider trading probe received payouts following the cryptocurrency investigator's public disclosure on social media to his audience of 977,500 followers.
Through a post shared on X this Thursday, ZachXBT revealed that Broox Bauer, an employee at Axiom, along with additional parties, purportedly engaged in insider trading operations within the organization "since early 2025." The pseudonymous blockchain detective indicated that Bauer purportedly leveraged internal systems "to lookup sensitive user details to insider trade by tracking private wallet activity."
The investigator published audio recordings connected to the probe, featuring a person he identified as Bauer making statements about his capability to monitor Axiom's user base. Shortly after ZachXBT's revelation, Axiom responded via X, expressing that the company was "shocked and disappointed" upon learning of the allegations.
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
This probe represents the most recent investigation conducted by the digital detective, who has established a reputation within the cryptocurrency sector for exposing fraudulent schemes, security breaches, and cases of insider trading alongside other questionable conduct. Polymarket participants wagered close to $40 million in the period preceding today's disclosure, speculating that Axiom would emerge as the investigation's focus.
A single Polymarket participant, who executed multiple wagers on a comparable event contract, secured approximately $400,000 in profits. Additional users exchanged over $9.7 million through the platform's "Which crypto company will ZachXBT expose for insider trading?" contract, claiming victory on their predictions.
Prediction platforms under scrutiny in US for state-federal divide on enforcement
During the previous week, Commodity Futures Trading Commission (CFTC) Chair Michael Selig declared that the federal regulatory body possessed "exclusive jurisdiction" governing prediction markets, countering multiple state-level regulators that have taken aim at platforms such as Polymarket and Kalshi concerning sports wagering activities. The CFTC's chairman cautioned that any state-level organizations that contest the federal agency's authority would face legal proceedings in court.