TLDR
- Blockchain investigator ZachXBT teased a “major investigation” into insider trading at a top crypto firm, set to drop February 26
- Polymarket bettors placed over $7 million wagering on which company will be named
- Solana liquidity platform Meteora leads the odds at around 43%, followed by Axiom, Pump.fun, Jupiter, and MEXC
- ZachXBT claims multiple employees “abused internal data to insider trade over a prolonged period of time”
- Prediction markets themselves are under scrutiny from US regulators, with the CFTC asserting federal jurisdiction over platforms like Polymarket
Blockchain investigator ZachXBT posted on X that he would release a “major investigation” into one of crypto’s most profitable businesses on February 26.
He said the investigation would show that multiple employees abused internal data to insider trade over a prolonged period. He did not name the company.
The announcement was enough to spark a betting frenzy on Polymarket, a blockchain-based prediction market where users risk real money on real-world outcomes.
Within hours of the post, traders began placing bets across several named candidates. Total wagers crossed $7 million as of Tuesday.
Polymarket works by letting users trade contracts tied to specific outcomes. Odds reflect where bettors are willing to put capital, not confirmed facts.
Solana-based liquidity platform Meteora is the current front-runner, carrying around 43% odds. That outcome alone has drawn over $319,000 in volume.
Meteora has been discussed in crypto communities before, largely due to its role in meme coin launch liquidity and its proximity to politically linked tokens, including Trump-themed meme coins. The company did not respond to requests for comment.
Other Candidates and Their Odds
Axiom sits at 13% and Pump.fun at 12%. Pump.fun has faced months of scrutiny over early-wallet sniping, though it has denied any insider advantages.
Jupiter is at 8% and MEXC at 7%. MEXC has faced ongoing social media discussion about its token listing behavior and timing around meme coin markets.
Odds have shifted since the market opened. Axiom, Pump.fun, and Jupiter all fell 37–42% from their initial readings. Meteora has strengthened its lead over that same period.
Prediction Markets Facing Regulatory Pressure
Polymarket itself is operating under growing regulatory attention in the United States. CFTC Chair Michael Selig said last week that the federal regulator has “exclusive jurisdiction” over prediction markets, calling them derivatives markets.
Selig warned that state-level regulators challenging the CFTC would be met in court. Polymarket, Kalshi, and similar platforms have faced lawsuits in multiple states over claims they offer illegal sports gambling.
Polymarket has challenged Massachusetts directly, arguing only the CFTC has authority over its platform.
It remains unclear whether ZachXBT’s insider trading allegations involve company stock, digital assets, or both.
ZachXBT has a track record of publishing on-chain investigations that have led to confirmed findings in past cases, including exposing a Coinbase impersonation scam using blockchain data.
The investigation was scheduled for release on February 26.
