- Crypto detective ZachXBT exposed an alleged insider trading ring within crypto exchange Axiom, where employees abused data tools to spy on user wallets.
- Senior employee Broox Bauer recorded on tape reportedly described how he could track any user via reference code, wallet, or user ID to inform trading.
- The investigation caused a $38 million prediction market frenzy on Polymarket, raising concerns about insider trading within that very market.
- One Axiom employee lost $20,000 betting on the prediction market, while the company said it was “shocked and disappointed” by the allegations.
On February 26, renowned crypto investigator ZachXBT released a major exposé alleging that employees at the exchange Axiom abused internal controls to spy on users for insider trading. Recordings show a group of employees and moderators discussing how to use company dashboards to pull up “anything” on its users.
They reportedly targeted key opinion leaders and mapped out wallet details provided by senior business development employee Broox Bauer. Bauer allegedly laid out ground rules on a call, instructing the group not to message about their activities on Discord and promising to provide data if sent identifying information.
Meanwhile, Bauer explained he could track any user via reference code, wallet, or user ID. He also detailed how he slowly increased the number of wallets probed from 10-20 initially “so it does not look that suspicious,” and promised one member a profit of $200,000.
Consequently, Axiom responded by stating it was “shocked and disappointed” and had removed access to the internal tools. ZachXBT hinted the evidence might be fit for a legal case in the Southern District of New York.
The drama began days earlier when ZachXBT teased the investigation, causing massive speculation. This led Polymarket to launch a prediction market that attracted $38 million in trading volume on which firm would be exposed.
Ironically, some warned users to avoid this market due to the high potential for insider trading. One Axiom employee, who publicly defended the company, apologized after the reveal and claimed to have lost $20,000 betting on it.
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