Polymarket user gains $400K betting on ZachXBT investigation

CoinTelegraph

by Turner Wright

February 26, 2026

AI-Generated Deep Dive Summary

A Polymarket user has made a significant profit of $400K by correctly betting on an insider trading investigation conducted by the crypto sleuth ZachXBT. The investigation centered on Axiom, a trading platform, where ZachXBT alleged that Broox Bauer and others were involved in insider trading activities since early 2025. According to the pseudonymous investigator, Bauer allegedly used internal tools to access sensitive user details for private wallet activity tracking, enabling insider trades. Polymarket users had placed bets on whether Axiom employees would be targeted in ZachXBT’s investigation, and those who wagered correctly were handsomely rewarded. The outcome highlights the growing popularity of prediction markets within the crypto community, where users speculate on events tied to blockchain and trading platforms. With over 977,500 followers on social media, ZachXBT’s announcement generated significant attention, underscoring the influence of online sleuths in shaping market outcomes. This incident also sheds light on the broader regulatory scrutiny faced by prediction markets platforms in the U.S. As policymakers examine these platforms, the case of Axiom and Broox Bauer raises important questions about transparency, accountability, and the potential misuse of internal tools for financial gain. The investigation not only impacts individual traders but also reflects the ongoing challenges of enforcing fair practices in decentralized and pseudonymous crypto ecosystems. For readers interested in crypto, this story highlights the intersection of blockchain technology, insider trading, and regulatory oversight. It underscores the risks and rewards of participating in prediction markets and the growing role of investigative journalists like ZachXBT in uncovering misconduct within the digital asset space. The outcome also serves as a cautionary tale for traders and platforms alike, emphasizing the importance of ethical practices and adherence to regulations in the fast-evolving world of cryptocurrency.

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Originally published on CoinTelegraph on 2/26/2026