Key Takeaway:
- Insider-linked wallets reportedly profited around $1.2M betting on Axiom naming.
- Lookonchain: 12 wallets netted $1.42M from roughly $400K in stakes.
- Senior BD allegedly misused internal dashboards; definitive proof may require internal logs.
Suspected insider-linked addresses profited roughly $1.2 million by wagering that Axiom would be named in ZachXBT’s investigation. Based on data from Lookonchain, 12 wallets netted about $1.42 million from roughly $400,000 in stakes, with one turning ~$65,800 into ~$477,176. The report also flagged unusually large, low-odds wagers placed shortly before the public reveal.
According to ZachXBT, a senior business development employee at the exchange allegedly abused internal dashboards to access user wallets, referral codes, and other identifiers. The investigator has also noted that definitive proof of trading on that data would likely require internal logs, so the claims remain allegations.
Defioasis.eth found that among roughly 3,630 addresses betting on “Axiom,” 56.2% made profits, while eight of the top ten profit-makers appeared to be single-purpose wallets consistent with insider behavior. Those eight reportedly earned over $1.2 million collectively, and three wallets cleared more than $100,000 each.
According to the CFTC’s Enforcement Division, misuse of material nonpublic information on prediction markets can fall under fraud and manipulation provisions of the Commodity Exchange Act. A recent advisory cited cases including a candidate trading on their own election, indicating that enforcement risk exists when privileged access shapes wagers.
The platform has said it revoked access to the internal tools allegedly misused and intends to hold any responsible parties accountable before external authorities weigh in. Axiom said it was “shocked and disappointed.”
At the time of writing, major equity indices were mixed, with the S&P 500 down 0.54%, the Hang Seng up 0.95%, and the Nikkei 225 up 0.16%. Figures were posted on a delayed basis.
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