Suspected Insider Wallets Net $1.2M Betting on ZachXBT’s Axiom Expose

In an X response to the incident, Axiom said it was “shocked and disappointed” in the news and that it had removed access to the tools that were used in the alleged insider trading.

Prediction markets raise insider trading allegations

Insider trading concerns in prediction markets mounted in early January after a highly profitable bet on the removal of Venezuelan President Nicholas Maduro by the US raised eyebrows.

On Jan. 3, a Polymarket account placed a bet on a contract predicting that Maduro would be removed from office just hours before US forces captured him in a military operation, netting the user about $400,000 in profit.

US lawmakers have since proposed legislation aimed at restricting political prediction market trading by government officials, adding to the regulatory spotlight on the sector.

Polymarket faces growing regulatory scrutiny on gambling concerns

Polymarket, the largest decentralized prediction market, has faced mounting regulatory pressure in several countries where authorities have argued that the platform offers unlicensed gambling.

Hungary and Portugal blocked access to the platform in January, citing concerns related to forbidden gambling activities.

A week earlier, Ukraine blocked Polymarket, classifying its activities as unlicensed gambling under national law.

Polymarket has also been restricted or blocked in several other countries over gambling concerns, including France, Belgium, Poland, Singapore and Switzerland.