Y Combinator-Backed Axiom Exchange Employees Accused of Insider Trading: ZachXBT
Decrypt
by André BeganskiFebruary 26, 2026
AI-Generated Deep Dive Summary
Axiom Exchange, a Y Combinator-backed non-custodial trading platform, is facing serious allegations of insider trading involving multiple employees, according to blockchain investigator ZachXBT. The sleuth claimed that Broox Bauer, a senior business development employee at Axiom, abused internal tools to access sensitive user data and private wallet activity for personal gain. Bauer allegedly tracked users using referral codes, wallet addresses, or identities, enabling him and others to trade based on inside information. This conduct reportedly allowed them to profit from trading meme coins by exploiting influencer promotions.
The allegations came to light after ZachXBT shared evidence suggesting that Bauer and other employees mapped out wallet addresses tied to specific traders, including influencers like "Frank" and "GCR." These individuals were said to purchase large amounts of meme coins before promoting them to their followers, creating profitable opportunities for insider traders. While ZachXBT faced challenges in pinpointing exact examples due to the high volume of trades, he provided screenshots of what he claims are Bauer's financial records, showing over $300,000 in funds.
Axiom responded by distancing itself from the alleged behavior, calling it inconsistent with its broader culture. The company removed access to internal tools and promised to investigate further. Despite this, the incident has raised concerns about accountability within crypto platforms. ZachXBT's investigation highlights the potential for insider trading in decentralized systems, where private wallet activity can be exploited for profit.
This story matters because it underscores the risks of insider trading in the crypto space, particularly on non-custodial platforms that rely on internal tools and user data. Such practices not only harm individual users but also erode trust in the broader Web3 ecosystem. As crypto continues to grow, incidents like these highlight the need for stronger safeguards and regulatory oversight to prevent similar abuses.
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Originally published on Decrypt on 2/26/2026