Prediction market platform Polymarket saw significant user gains as speculation surrounding an insider trading investigation by crypto sleuth ZachXBT proved accurate. Users betting on an Axiom employee being the target of the probe were rewarded.
ZachXBT announced on social media that Broox Bauer, an Axiom employee, allegedly used internal tools to access sensitive user details and engage in insider trading since early 2025. Axiom stated it was "shocked and disappointed" and has removed access to the tools while launching its own investigation.
The investigation by ZachXBT, known for uncovering scams and illicit activities, led to nearly $40 million being bet on Polymarket contracts concerning which crypto company would be exposed.
One Polymarket user profited approximately $400,000 from bets placed on the outcome. This event occurs as US policymakers continue to scrutinize prediction market platforms, with the CFTC asserting exclusive jurisdiction over such markets.