ZachXBT Set to Unveil Insider-Trading Probe as Polymarket Wagers Reach $3 Million

Polymarket allows traders to use crypto assets to wager on outcomes ranging from elections to economic events, with contract prices often treated as real-time measures of collective expectations. The decentralized prediction market relies heavily on transparent blockchain records and wallet activity to establish credibility, making signs of trading on nonpublic information or coordinated bets a significant test of market integrity and a potential focus for regulators.

A Bloomberg Businessweek analysis flagged about $200 million of Polymarket trading during the first half as potentially linked to insider activity. The top 1% of profitable accounts captured more than half of all gains, while over 50% of winning wallets were created within 24 hours before placing their bets. Some traders also appeared to split positions across multiple related wallets before withdrawing proceeds through Coinbase, intensifying scrutiny of the platform’s fairness.

Polymarket allows users to wager crypto assets on event outcomes. Although its onchain transactions are publicly visible, the offshore platform does not require identity verification. After onchain investigator ZachXBT said he would expose insider trading at a crypto company, a market opened for users to guess the company’s identity. Ironically, advance information may itself have leaked in the market betting on an insider-trading investigation.

On Feb. 26, 2026, ZachXBT identified Axiom as the subject of the investigation, alleging that its employees may have misused internal tools to track users’ wallets. The prediction market had recorded about $40 million in trading volume since Feb. 23. Lookonchain found that at least 12 newly created wallets had bet on Axiom in advance, earning more than $1 million in total, including $411,000 for one wallet. Axiom has revoked the relevant access and is investigating a possible leak.

ZachXBT is a pseudonymous on-chain investigator known for exposing crypto scams, hacks and insider trading. The case concerns Axiom employees who may have misused internal tools to monitor activity in users’ private wallets and then trade on that information, highlighting risks surrounding access controls for sensitive platform data and information asymmetry in prediction markets.

On February 26, 2026, ZachXBT alleged that Axiom employees, including Broox Bauer, had engaged in insider trading since early 2025. After the allegations were published, the related Polymarket market resolved with Axiom as the answer. More than $9.7 million in contracts changed hands on the question, with total bets approaching $40 million, and one user made about $400,000. Axiom immediately revoked access to the tools involved, apologized and continued its investigation.

ZachXBT, a crypto investigator known for tracing on-chain fund flows, has exposed numerous scams and hacking incidents. His latest investigation targets several employees at what he described as one of the crypto industry's most profitable companies. They are suspected of having traded on nonpublic information over an extended period, raising questions about the company's internal controls, management of conflicts of interest and market fairness.

ZachXBT said he would release the full report on Feb. 26 but has yet to disclose the company's name, the number of people involved, the trading period or the sums at issue. Bettors on Polymarket briefly identified Meteora as a possible target, prompting questions about whether the information had influenced the prediction market. ZachXBT responded that some information inevitably circulated during interviews with multiple parties.

ZachXBT, known for tracing blockchain fund flows and exposing crypto scams, has turned his attention to a crypto company ranked among the world’s seven most profitable, alleging that it may have engaged in insider trading over an extended period. The institution’s identity, the amounts traded and supporting evidence have yet to be disclosed, leaving the allegation subject to verification in the forthcoming report.

ZachXBT said he would release the full investigation on February 26, prompting Polymarket to open a related prediction market. Traders have largely bet that Meteora or Pump.fun could be the subject of the exposé. ZachXBT has not confirmed either company’s involvement, while Polymarket’s betting volume and the final report’s findings have yet to be disclosed.