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- Twelve wallets placed massive bets before Axiom exposure.
- $400,000 in wagers exploded into $1.42M overnight.
- Lookonchain flags suspicious timing behind insider-linked prediction trades.
A cluster of crypto wallets secured significant gains shortly before a widely anticipated insider trading disclosure. In the case of blockchain analytics firm Lookonchain, twelve addresses bet close to $400,000 on a combination bet that ZachXBT would unveil. Those positions earned the investigator a total of nearly one and a half million returns ($1.42 million) since the investigator published his findings, and retained over a $1M in profit.
In an X post, Lookonchain also shared the wallet activity, saying they were suspected insider wallets. The company used the time and concentration of the orders to be made before the public thread as the basis of its evaluation. It, however, failed to determine the faces behind the wallets. It was also not able to demonstrate any direct evidence that they were employees of Axiom.
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Coordinated Bets Surface Before Public Disclosure
According to blockchain data accessed by Lookonchain, the wallets were in the same positions they were when ZachXBT exposed the wallets. The most significant increase was made on a wallet that was labeled predictorxyz. That speech turned between $65,800 and $477,176. The trade made a profit of over $411000 in a few windows.
Several smaller wallets overall returned even higher percentage returns. A single speech produced a 926-percent profit on a bet of under five thousand dollars. Lookonchain explained that such bets were concentrated and not timed in a way that was not suspicious since they were made in advance of the official announcement of Axiom.
Axiom Responds as Investigation Details Emerge
Axiom was eventually found to be the company at the center of the alleged insider trading scandal by ZachXBT. In his post, he stated that he was suspended from conducting an independent inquiry into reported malpractice at Axiom. He also said that he approached the company to comment on his findings before releasing the findings.
ZachXBT said in his review that there were minimal or no access or monitoring controls to curb possible abuse. He claimed that there were internal systems that gave wide access to user wallet information, such as transaction history, associated accounts, and wallet nicknames.
After the announcement, Axiom made a statement on X company mentioned that it was angered and disheartened to hear that an employee of its ranks used the internal customer support tools to search user wallets. Axiom also stated that it blocked access to them and would keep investigating and keep the responsible parties liable. The exchange also wrote that the incident was not a reflection of the team and that it would update as more information becomes available.
Lookonchain insisted that its results were based on blockchain transactional patterns, and when the wagers were made before the unveiling of the expose.
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