Insider trading spike on Polymarket reveals internal data leaks at Axiom

Profits exceeding $1.2 million on a Polymarket contract linked to Axiom's investigation have reignited fears over transparency and security in decentralised prediction platforms, amid allegations of internal data misuse and regulatory scrutiny.

A cluster of crypto wallets realised more than $1.2 million on a Polymarket contract tied to an onchain investigation into decentralised finance platform Axiom, a trading outcome that has renewed concerns that prediction markets can reward those with advance knowledge of material disclosures, according to reporting by Cointelegraph and corroborating onchain analysis. (CryptoBriefing has also summarised the underlying investigation.)

Trading records compiled on Dune indicate the eight most profitable addresses on the contract returned roughly $1.2 million in combined gains, while more than 50 other wallets together lost about $1.23 million and two addresses recorded losses near $366,000, data reviewed by industry watchers shows. (Forbes and CryptoBriefing provide contemporaneous summaries of these figures.)

Onchain researcher Defioasis judged that eight of the top ten wallets were likely insider addresses based on transaction patterns, posting that "There are 3 addresses that achieved profits exceeding $100,000, all of which are insider addresses that traded only this single market." That pattern , concentrated, single-market activity , is being cited as evidence consistent with advance access to non-public information. (Cointelegraph first reported the researcher’s findings.)

The betting gains followed the publication by investigator ZachXBT of an exposé alleging that Axiom employee Broox Bauer and others exploited internal tools to access sensitive user data and profit from it. Multiple outlets report recordings and screenshots showing internal dashboard lookups that could map users by referral code, wallet address or user ID, lists of tracked wallets compiled in shared spreadsheets, and screenshots identifying traders by nickname and wallet history. Axiom has said it has revoked the disputed access and opened a probe. (CryptoBriefing, Forbes, CCN and Crypto.News summarise the material ZachXBT disclosed.)

Axiom responded by saying it was "shocked and disappointed" and that it had removed access to the tools implicated in the alleged activity, while also launching an internal investigation, the company told reporters. Several accounts that analysed the event emphasise that the incident highlights both operational security gaps at firms with broad internal visibility and the difficulty of policing informed betting on decentralised prediction platforms. (Forbes and MEXC covered Axiom’s response and the technical detail.)

Observers say the episode sits alongside other high-profile questions about insider advantage in prediction markets. Earlier this year a highly profitable Polymarket wager on the sudden removal of a national leader drew regulatory scrutiny after it paid out to a single account, prompting lawmakers in the United States to propose curbs on officials trading on political markets; Wired’s reporting of a separate OpenAI-related enforcement case has further underscored corporate concerns about staff using confidential information to trade on prediction platforms. Regulators in several countries have already moved to restrict or block prediction sites over gambling concerns, intensifying the sector’s legal and policy scrutiny. (Cointelegraph, Wired and other industry reports provide the broader context.)

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Source: Noah Wire Services