Insider-linked wallets dominate profits in ZachXBT inquiry on Polymarket

Analysis reveals that eight wallets connected to alleged insiders secured the majority of gains from a single Polymarket bet tied to the ZachXBT investigation, raising concerns over potential misuse of privileged information in low-liquidity markets.

Eight wallets linked to alleged insiders walked away with the lion’s share of returns from a single Polymarket wager tied to the ZachXBT Axiom inquiry, according to reporting that has intensified questions about possible misuse of privileged information. Data reviewed by blockchain researchers shows heavy profit concentration among a small cluster of addresses even though thousands participated in the market. (Sources: LiveBitcoinNews, CoinDesk analysis).

On-chain records analysed by independent researchers indicate more than 3,600 addresses placed bets on the Axiom outcome, with a majority of participants modestly profitable. Yet the largest gains clustered in a handful of accounts: eight of the top ten profit-making addresses are being characterised as insider-linked and together realised roughly $1.2 million in net profits. Several of those wallets made only one or two trades and focused exclusively on the ZachXBT-related market. (Sources: LiveBitcoinNews, CoinCentral).

The pattern, large, early stakes on a single low-liquidity market followed by swift exits, has fuelled suspicions. Blockchain sleuths flagged one wallet that reportedly staked $65,000 when odds implied a slim chance of success, while another newly created account received a $70,000 USDC deposit shortly before placing a winning wager. Such behaviour contrasts with typical retail strategies, where traders spread exposure across multiple markets to manage risk. (Sources: LiveBitcoinNews, Lookonchain coverage reported in Coin360).

Beyond the eight leading winners, dozens of other addresses posted material gains: researchers identified nearly fifty wallets that made between $10,000 and $100,000 each, collectively adding roughly $1.34 million to aggregate winnings. Losses were fewer but still notable, with a small number of traders incurring six-figure losses and about fifty more recording five-figure setbacks. Industry observers say the distribution underlines how early access to information, or the ability to act before odds adjust, can skew outcomes in prediction markets. (Sources: LiveBitcoinNews, Coin360, MoneyCheck).

The wider context of the ZachXBT investigation has added urgency to the scrutiny. Reporting has alleged that certain Axiom employees misused internal tools to access sensitive user data, with sources citing audio recordings and screenshots as part of the evidence that prompted the exposé. Those allegations, coupled with concentrated betting patterns on Polymarket, have prompted calls for exchanges and prediction platforms to strengthen surveillance for anomalous activity and to review controls around privileged access. (Sources: Crypto.News, CoinCentral).

Polymarket has not issued a substantive public response to the specific wallet-level claims detailed by researchers, and ZachXBT’s disclosure of the alleged internal misuse continues to reverberate across the crypto community. The episode has prompted analysts to urge clearer rules and better monitoring to guard against potential insider advantage in low-liquidity prediction markets. (Sources: LiveBitcoinNews, Webopedia, Coin360).

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