TLDR
- Blockchain investigator ZachXBT named Axiom Exchange senior employee Broox Bauer for allegedly misusing internal tools to track private wallets and trade memecoins using inside information.
- Axiom confirmed the breach, removed access to internal tools, and pledged to investigate further.
- A Polymarket prediction market on ZachXBT’s target generated over $30 million in volume, with odds shifting sharply toward Axiom before the report dropped.
- A separate user “predictorxyz” is now under investigation after betting $70,000 USDC on Axiom in a new account, with funds linked to an active Axiom user.
- U.S. lawmakers have previously flagged prediction markets as vulnerable to insider trading, and this case adds fresh pressure on the industry.
Blockchain investigator ZachXBT published findings on February 26 naming Broox Bauer, a senior business development employee at onchain trading platform Axiom Exchange, for allegedly misusing internal tools to access private user data.
ZachXBT said Bauer used internal dashboards to look up sensitive user information, including linked wallet addresses. He then shared that data with a small group that tracked trades made by prominent crypto influencers.
Audio clips shared in ZachXBT’s thread include a person identified as Bauer claiming he can track “any Axiom user” by referral code, wallet address, or UID. In the same recording, he describes gradually increasing his activity “so it does not look that suspicious.”
The alleged strategy targeted traders known for building large memecoin positions from private wallets before promoting tokens publicly. By identifying undisclosed wallets, the group could monitor accumulation and position ahead of price moves.
ZachXBT said he was hired to investigate allegations of internal tool misuse but did not name who retained him. He mapped what he identified as Bauer’s primary wallet, noting funds flowed to deposit addresses on centralized exchanges.
He cautioned that without access to Axiom’s internal logs, establishing high-confidence insider trading examples from onchain data alone is difficult.
Axiom responded on X, saying it was “shocked and disappointed” that a team member abused internal customer support tools. The company said it removed access to those systems and pledged to hold the responsible parties accountable.
Axiom was founded in 2024 and is a member of Y Combinator’s Winter 2025 cohort. The platform has generated more than $390 million in revenue to date, according to ZachXBT.
Polymarket Bets Shifted to Axiom Before Report Dropped
Before ZachXBT published his findings, a Polymarket prediction market asking traders to name his target had generated over $30 million in volume. Meteora led early odds at around 43–44%, but odds shifted sharply toward Axiom at 35% by European morning hours on Thursday.
That shift is now under its own investigation. A user named “predictorxyz” bet $70,000 USDC on Axiom in a newly created prediction market account. Funds tied to that account link to a Solana address associated with an active Axiom user who recently bundled CRABS tokens under the username “JustADegen” on Fomo.
Binance News reported the investigation into “predictorxyz” was initiated after the suspicious positioning was flagged.
Wider Scrutiny on Prediction Markets
Polymarket prohibits trading on material non-public information, but enforcing those rules against pseudonymous international users is difficult, according to compliance experts.
U.S. lawmakers raised concerns about prediction market insider trading risk in early 2025, after a suspiciously timed Polymarket win tied to a geopolitical event prompted talk of new legislation.
Polymarket’s resolution process relies on UMA’s oracle system, which has faced criticism in past markets over whale-driven governance and disputed outcomes.
The Polymarket market on ZachXBT’s target settled based on who he named explicitly, not on whether insider trading was proven.
Axiom said it will share further updates on its investigation via its official Twitter account as new information becomes available.
