I just learned about a pretty serious scandal in the crypto industry. ZachXBT, a well-known blockchain investigator, released material about insider trading at Axiom Exchange. The gist is that a senior platform employee allegedly used internal access to see confidential user data and track their wallets.

According to ZachXBT, Brooks Bower from Axiom could both find the index by wallet address and access all related information about a specific trader through an internal dashboard. Moreover, he allegedly shared this data with a group of people who tracked the movements of well-known crypto influencers. The strategy was simple: identify previously hidden wallets of large meme coin accumulators, then take a position before them.

In the published audio recordings, the alleged Bower says he can track any Axiom user by referral code, address, or UID. He even describes how he gradually increased activity to avoid suspicion. When ZachXBT dug deeper, he found Bower’s main wallet and traced the movement of funds to centralized exchange deposit addresses.

AXIOM responded quite quickly. The company stated that they are shocked and disappointed by what’s happening, immediately restricted access to internal systems, and promised to conduct a full investigation. They emphasized that this does not reflect their stance and that they always prioritize user security.

Interestingly, there was a sharp change in quotes on Polymarket. At the start of the week, the platform Meteora led with a 43% probability, but by Thursday, Axiom soared to 35%, surpassing competitors. Although these odds simply reflect traders’ opinions, they show how seriously the market is taking the situation.

What’s important: ZachXBT himself noted that without access to Axiom’s internal logs, it’s difficult to prove insider trading with 100% certainty based solely on blockchain data. This is a good reminder that even detailed analysis of how to find the index by address can only provide part of the picture.

This whole story once again highlights why it’s necessary to be more careful with trading practices in crypto. Platforms should have strict controls over access to user data, and this is becoming increasingly critical as the industry grows. It’s good that investigators like ZachXBT keep the market on its toes.