Axiom Exchange Insider Trading Scandal: Is Your Trading Data Being Used Against You?

The mystery is finally solved. ZachXBT has just exposed insider trading activities on Axiom Exchange, this Solana platform backed by Y Combinator. It turns out that the employees allegedly used internal administration tools to spy on profitable traders and present this data to their own users. Some people are quite disappointed that this is what all the hype has led to.

We’ve had bigger names like Jane Street get dragged for billions due to alleged manipulation, but at the end of the day it’s basically just a few shady employees carrying out insider trading on meme coins.

Man @zachxbt he hyped the post like he was about to drop a nuclear bomb

The most anticlimactic revelation in CT history

He gave the scammer a chance to trade the news and make more money, what a clown show.

Maybe focus on the big fish that manipulate us every day, who cares about Axiom

—James McAvoy (@JamesMcavoyJr21) February 26, 2026

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Axiom insider trading: here’s what we know

This wasn’t a fancy smart contract hack; it was a simple administrative abuse. According to the investigation, Senior Business Development Manager Broox Bauer and others allegedly used Axiom’s internal “God mode” dashboards to view non-public user data. This included wallet history, linked accounts, and transaction times. Bauer was allegedly filmed describing a plan to earn $200,000 for an acquaintance by following 10 to 20 specific portfolios at a time.

1/ Meeting @WhereBrox (Broox Bauer), one of multiple @AxiomExchange employees allegedly abused the lack of access controls to internal tools to seek sensitive user information in insider trading by tracking private wallet activity since early 2025. pic.twitter.com/KwICQMJL1q

-ZachXBT (@zachxbt) February 26, 2026

Essentially, they were playing poker while seeing each other’s cards. By monitoring successful traders, insiders could allegedly “copy-trade” (imitate trades) or pre-empt (buy ahead of) the very users who determine their platform’s volume.

This type of misconduct is consistent with a worrying trend in the industry; Just recently, Terraform Labs sued Jane Street for insider trading, suggesting that privileged entities exploiting their position is becoming a systemic problem.

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The horrible truth: not only manipulation, but also privacy is in danger

Perhaps more concerning than the insider trading committed by this individual is the fact that our data is never truly private. If you trade on centralized DeFi interfaces, you should assume that your data is visible. The Axiom scandal shows that insiders could potentially see user IDs, wallet addresses and position sizes before they hit the public chain. This is a massive cryptographic security breach. If you are a high-volume trader, this exposes you to predatory insider trading schemes that can silently bleed your portfolio.

But the risk is not only digital. As we have already noted with the Binance employee attack, the physical security risks of leaking personal data are real. When internal newspapers create a database of “who has the money,” that database becomes a target. While projects like Hyperliquid are launching DeFi policy centers to try to legitimize the space with better standards, incidents like the Axiom scandal are pushing the industry back into the shadows. For now, the safest bet is to assume that if a human verifies your account or creates the dashboard, a human can probably see your transactions.

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