Axiom Exchange, a Solana trading platform backed by Y Combinator, faced scrutiny lately after blockchain investigator ZachXBT revealed an alleged insider trading scheme.
His report claimed employees used internal tools to access private user trading data and track profitable traders. This potentially allowed them to copy or front-run trades before they appeared on the blockchain.
Here’s what really happened.
Axiom Data Breach Exposed Internal Trading Information
Axiom Exchange launched in 2024 and operates within the Solana ecosystem. The platform later joined Y Combinator’s Winter 2025 startup program and experienced rapid growth.
With the increase in trading activity, Axiom reportedly generated more than $390 million in revenue within a short period. The platform became particularly active in meme coin and fast-moving token markets.
As the platform expanded, employees relied on internal dashboards to manage operations. These administrative tools were designed to monitor user accounts and review trading activity.
Live Bitcoin reported ZachXBT investigated Axiom Exchange after reports that employees used internal tools to access sensitive user trading data. Evidence from leaked audio, chats, and wallet records suggested attempts to profit from non-public information.
According to the investigation, the dashboard contained detailed user information. The system reportedly displayed wallet addresses, linked accounts, transaction histories, and trade timestamps.
1/ Meet @WheresBroox (Broox Bauer), one of the multiple @AxiomExchange employees allegedly abusing the lack of access controls for internal tools to lookup sensitive user details to insider trade by tracking private wallet activity since early 2025. pic.twitter.com/KwICQMJL1q
— ZachXBT (@zachxbt) February 26, 2026
This internal data allowed employees to observe how traders interacted with the platform. In many cases, it also revealed connections between multiple wallets belonging to the same user.
The investigation found that access to this dashboard was not strictly limited. Employees outside security or compliance roles could reportedly view sensitive information.
Because internal records update faster than public blockchain confirmations, the system could show trades before they appeared on-chain. This time gap created a potential advantage for anyone with internal access.
Rather than an external hack, the investigation described the issue as a misuse of internal administrative tools. The platform’s systems functioned normally, but the level of access provided opportunities for abuse.
Axiom Insider Trading Method Explained Step by Step
Having reviewed internal documents and chat logs, the probe revealed how the so-called insider trading scheme went about.
The initial one was to find profitable traders on the platform. Employees were also said to be searching the dashboard for accounts with good trading outcomes.
Once identified, the internal system revealed the wallets linked to those traders. This made it possible to follow the trading behavior of individual users.
The next step involved continuous monitoring of those wallets. According to the report, insiders sometimes tracked groups of ten to twenty wallets simultaneously.
By observing activity within the internal dashboard, employees could see trades before they appeared on the public blockchain. This early visibility created a window for action.
Insiders could then place their own trades before the targeted transaction reached the market. This practice is commonly known as front-running.
Front-running occurs when someone trades based on knowledge of another pending order. When the insider order executes first, the market price may shift before the original trade arrives.
As a result, the targeted trader may receive a less favorable price. Even small price changes can affect profits, especially in volatile token markets.
The investigation also described copy-trading as another method. Employees allegedly repeated trades executed by successful traders.
By copying strategies used by profitable traders, insiders could benefit from trading decisions made by others. This approach required constant monitoring of wallet activity.
Leaked audio recordings reportedly captured a senior employee explaining how traders could be tracked using referral codes, wallet addresses, or account identifiers.
Axiom Investigation Identifies Individuals and Supporting Evidence
The investigation identified Broox Bauer, a senior business development employee, as a central figure in the alleged activity. Bauer was reportedly based in New York and had access to the internal dashboard.
In recorded conversations reviewed during the investigation, Bauer described how the system could reveal detailed user information. He reportedly stated that he could “find out anything to do with that person.”
3/ Broox is a current Axiom senior BD employee based in New York.
In the clip Broox states he can track any Axiom user via ref code, wallet, or UID and claims he can “find out anything to do with that person”.
He also describe researching 10-20 wallets initially and slowly… pic.twitter.com/60rhcapkH6
— ZachXBT (@zachxbt) February 26, 2026
The recordings also included discussions about tracking profitable wallets and copying their trades. According to the report, the strategy involved monitoring selected accounts over long periods.
The investigation described a plan to help an associate generate about $200,000 using the method. The plan involved observing specific wallets and placing similar trades.
9/ During the February 2026 recorded call, Broox outlined a plan to help Gowno profit $200K quickly by abusing his access at Axiom which is consistent with similar illicit activity he had been conducting with others since early 2025.
In private chats he also shared screenshots… pic.twitter.com/dH3UIAVTSB
— ZachXBT (@zachxbt) February 26, 2026
Blockchain analysis also linked several wallets to discussions in private chats. These wallets were active in meme coin trading on the platform.
Because the wallets executed many transactions, identifying individual front-running trades required access to internal exchange logs. Those logs were not available to the investigator.
The investigation also referenced other individuals who appeared in recorded conversations. These included a colleague known online as Ryucio and a moderator identified as Gowno.
Another individual, referred to as “Mystery,” was also mentioned in the discussions. According to the recordings, insiders discussed ways to profit gradually using insider access.
Jane Street Controversy And Ongoing Market Manipulation Debates
The Axiom investigation emerged during a period when several market manipulation debates had circulated across financial markets. One of the most widely discussed cases involves the trading firm Jane Street.
Terraform Labs recently filed a lawsuit accusing Jane Street of insider trading connected to transactions surrounding the collapse of the Terra ecosystem in 2022. According to Stacy Muur, Jane Street used insider information to dump $85M in UST minutes before a $150M withdrawal triggered the $40B collapse.
We witnessed a brutal correction in crypto for 5 weeks straight.
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1. Terraform Labs sued Jane Street over the @terra_money collapse
Allegedly, Jane Street used insider information… pic.twitter.com/KBPwC8IdxA— Stacy Muur (@stacy_muur) February 27, 2026
At the same time, online discussions have focused on claims about unusual Bitcoin price patterns. Some traders suggested that Bitcoin often dropped shortly after the United States market opened.
These claims referred to a pattern occurring near 10 a.m. Eastern Time. Social media users described the phenomenon as the “10 a.m. dump.”
However, several analysts have questioned this explanation. Onchain analyst Nonzee commented on the pattern in a post on X. Nonzee wrote,
“For months, 10 AM meant one thing: the Jane Street dump. Yesterday, they got hit with an insider trading lawsuit. Today at 10 AM? Bitcoin rips higher instead. Coincidence, or did the game just change?”
For months, 10 AM meant one thing: the Jane Street dump.
Yesterday, they got hit with an insider trading lawsuit.
Today at 10 AM? Bitcoin rips higher instead.
Coincidence, or did the game just change? pic.twitter.com/W5t3i7Ubla
— Nonzee (@0xNonceSense) February 25, 2026
Such strategies can create short-term price movements without indicating manipulation. Moreno explained that this approach is common among market-neutral trading firms.
Macro analyst Alex Krüger also reviewed Bitcoin price data around the 10 a.m. window. His analysis showed no consistent pattern of daily declines.
Everyone says bitcoin dumps at 10AM every day.
I pulled the data, and it’s not true.
Since Jan 1, IBIT’s cumulative return in the 10:00–10:30 window is +0.9%, and in the 10:00–10:15 window it’s –1%. Noisy, not a systematic dump.
More interesting: the performance pattern in… pic.twitter.com/jboe0eehG0
— Alex Krüger (@krugermacro) February 26, 2026
Market analysts also emphasize that Bitcoin trades across numerous global exchanges. Because liquidity is distributed across many platforms, sustained manipulation by a single firm is difficult.
Live Bitcoin News reported that Bitcoin rose about 10% in two days, adding nearly $120 billion to its market value after five weeks of declines, with stronger spot demand and reduced short pressure supporting the rebound.
Coinbase Insider Trading Case Involving Listing Information
The issue of insider activity is not specific to Axiom. In 2022, one of the most popular cases involved the crypto exchange Coinbase.
The case involved confidential information about future online token listings. The state attorneys claimed that this information was shared by a former employee with colleagues.
Those associates allegedly bought tokens before the public listing announcements. When the tokens were listed on Coinbase, prices increased due to new trading demand.
The individuals involved reportedly sold the tokens after the announcements and made a profit. Authorities later charged Ishan Wahi with insider trading and was sentenced to two years, according to the Department of Justice.
The case became one of the first criminal insider-trading prosecutions involving digital assets. It demonstrated how internal exchange of information could influence market activity.
OpenSea Insider Trading Allegations In The NFT Market
Similar accusations have also appeared in the NFT sector. In 2021, an employee at the NFT marketplace OpenSea faced allegations related to featured NFT listings.
The employee was accused of purchasing NFTs shortly before they appeared on the platform’s homepage. After the promotion increased demand, the NFTs were sold for profit.
Homepage promotion on NFT marketplaces often increases visibility and trading activity. As a result, the featured collections frequently experience price increases.
Following the allegations, OpenSea introduced new policies limiting employee trading activity. The company stated that employees could no longer trade NFTs featured on the homepage.
Related Reading: $1.2M in Profits Tied to Insider-Linked Addresses in ZachXBT Market Bet
What These Cases Mean For Crypto Markets And The Path Forward
Taken together, the Axiom investigation and similar cases illustrate how access to internal information can influence digital asset trading. Crypto exchanges handle large volumes of sensitive trading data every day.
Administrative dashboards often reveal detailed user activity, wallet connections, and transaction histories. Without strong oversight, such systems may expose valuable market information.
The incident of Coinbase and OpenSea indicates how inside information on the listing or promotion might influence the value of assets. Another dimension is the Axiom allegation that targets user trading information.
With a growing crypto market, exchanges will expand their monitoring departments and restrict employees’ access to confidential information.
More vigorous controls and transparency can be used to minimize the possibility of insider activity throughout the industry.
