ZachXBT has just uncovered what appears to be a coordinated insider trading ring at Axiom crypto. According to its findings, senior employees used internal data tools to direct user transactions for more than 10 months, pocketing more than $400,000 in the process. The method involved privileged back-end access that allowed staff to track and mirror high-value portfolios before the broader market reacted.
This indicates more serious governance failures on a platform generating approximately $390 million in annual revenue. Non-technical staff allegedly had unrestricted access to real user credentials, revealing a serious breakdown in internal controls.
Key takeaways
- The actor: Senior business development staff with unlimited admin access to live user databases.
- The method: Cross-referencing internal UIDs with on-chain data to identify and launch KOL wallets.
- Failure: A YC-backed unicorn generating $390 million in revenue operating without any role-based access controls.
How the insider trading system worked within Axiom Crypto
The diagram was simple and effective. Investigators say employees used internal administrative dashboards intended for support and compliance to extract private user data. By linking user IDs to on-chain wallets, they could identify prominent traders and institutions behind supposedly anonymous addresses.
From there, the game was simple. Monitor activity, then negotiate ahead of time. Buy before a big wallet pushes the price. Sell before a whale comes out. It was at the top of their own users.
The activity would have lasted at least 10 months. Most troubling is that business development staff had the same level of access to the system as technical security teams. This breakdown in internal controls created the information asymmetry that made the project possible.
Discover: The best crypto to diversify your portfolio
$390M Revenue vs. Zero Access Control: What’s the Axiom Team’s Answer?
Axiom generated $390 million in revenue and grew rapidly, but the investigation shows its internal controls lagged far behind its growth.
The platform apparently lacked basic role-based access controls. Business development staff had broad visibility into user IDs and business data, creating a “God mode” environment. Least privilege systems and proper audit logs likely would have flagged the activity sooner. Instead, it would have gone unnoticed for almost a year.
The case highlights a common flaw in startups: growth and volume are prioritized, while governance is deferred. It works on a small scale. With a volume of billions, this becomes a handicap.
Axiom has confirmed a full internal audit. But the reputational damage is significant, and regulators may view the alleged $400,000 in inside profits as potential fraud.
Discover: The best new crypto in the world
The post Axiom Crypto Exposed: ZachXBT Alleges $400,000 Insider Trading appeared first on Cryptonews.
