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

The mystery is finally solved. ZachXBT recently disclosed internal trading operations on Axiom Exchange, that Y Combinator platform backed by Solana. It turns out that employees were using internal management tools to spy on profitable traders and drive their users forward with that data. Some people are very disappointed that this is what led to all this.

We had big names like Jane Street being dragged into the billions for alleged fraud, but in the end, it was just some shady operatives inside trading in meme coins.

A person @zakhxbt he stepped up the post like he was going to drop a nuclear bomb

Most of the anti climactic reveals in CT history

He gave the fraudster a chance to trade news and make a lot of money, what a clown show.

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

– James McAvoy (@JamesMcavoyJr21) February 26, 2026

FIND: Top Crypto Presales to watch now

Axiom Insider Trading: Here’s What We Know

This wasn’t smart contract hacking; it was just administrative abuse. According to the investigation, Senior Business Development leader Brooks Bauer and others allegedly used internal Axiom dashboards in “God mode” to view non-public user data. This includes wallet history, linked accounts, and trading sessions. Bauer was reportedly caught red-handed explaining a plan to win $200,000 to an acquaintance by tracking down some 10-20 bags at a time.

1/ Meeting @WheresBroox (Brooks Bauer), one of many @AxiomExchange employees are suspected of abusing the lack of access controls of internal tools to view sensitive user information in internal transactions by tracking private wallet activity from early 2025. pic.twitter.com/KwICQMJL1q

— ZachXBT (@zachxbt) February 26, 2026

Basically, they were playing poker while seeing everyone else’s cards. By monitoring successful traders, insiders may “copy trade” (imitate trade) or pre-buy (buy before) the very users who drive their platform’s volume.

This type of misconduct is consistent with a worrying pattern in the industry; Recently, Terraform Labs sued Jane Street for insider trading, suggesting that privileged organizations exploiting their position has become a systemic issue.

FIND OUT: 14 Best Crypto To Buy Now

The Bad Truth: It’s Not Only Cheating, But Also Privacy is at Risk

Perhaps more concerning than this person’s insider trading is the fact that our data isn’t really private. If you trade with DeFi centralized interfaces, you need to assume that your data is transparent. The Axiom scandal shows that insiders can see user IDs, wallet addresses, and position sizes before they go public. This is a major breach of crypto security. If you’re a high-volume trader, this exposes you to internal trading mechanics that can quietly bleed your portfolio.

But the risk is not just digital. As we’ve noted before with the Binance employee wrench attack, the physical security risks of leaked personal data are real. When internal loggers create a database of “who has money,” that database becomes a target. While projects like Hyperliquid are starting DeFi policy centers to try and legitimize the space with better standards, incidents like the Axiom scandal are pulling the industry back into the shadows. For now, the safest bet is to assume that if someone verifies your account or creates a dashboard, someone can probably see your activities.

FIND OUT: 5 Cryptos With High Risk Reward

Follow 99Bitcoins on X for Latest Market Updates and Subscribe on YouTube for Daily Expert Market Analysis.

The post Axiom Exchange Insider Trading Scandal: Is Your Trading Data Being Used Against You? appeared first on 99Bitcoins.