8 of the top 10 highest-earning addresses on Polymarket are reportedly linked to insiders who collectively profited over $1.2 million betting on ZachXBT’s Axiom insider trading investigation.
The incident exposes how early access to investigative findings can create asymmetric advantages on decentralized prediction platforms.
Why it matters:
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- Insiders trading on non-public investigative findings distorts outcomes on open prediction markets, harming regular bettors
- 52 addresses lost between $10,000–$100,000+, totaling over $1.6 million in losses, absorbing insider gains
- The incident raises regulatory questions about information asymmetry on decentralized finance (DeFi) platforms with no enforcement mechanism
The details:
- Lookonchain identified 12 suspected insider wallets generating a combined $1.02 million in profit
- Address
0x1d9af60c679cd0b577c3c4ccb4b1a4be4174426d(predictorxyz) earned $411,600 trading only the Axiom market, per DefiOasis - Two additional insider addresses earned $354,000 and $144,000, each trading a single market
- WuBlockchain confirmed 3,630+ total addresses bet on the Axiom market, with 56.2% ending profitable
The big picture:
- Insider-driven prediction market manipulation mirrors front-running patterns seen in traditional securities markets
- The ZachXBT Axiom exposé revealed how on-chain transparency can simultaneously expose and enable information-based exploitation
- Decentralized prediction markets lack enforceable insider trading rules, leaving structural abuse unaddressed
