Polymarket bettors appear to have insider-traded on a market designed to catch insider traders

At least 12 wallets collectively earned over $1 million betting on the outcome of blockchain sleuth ZachXBT's investigation, which named Axiom as a platform whose employees allegedly used non-public information for profitable trades. Polymarket had created a contract allowing users to bet on which company would be named, drawing significant volume. Data shows that some wallets bet heavily on Axiom just before the findings were published, with one trader turning a $0.14 average entry into $411,000 in profit. The odds for Axiom only swung to favor it late Wednesday, suggesting those who bet heavily beforehand either had exceptional foresight or possessed inside knowledge, likely stemming from Axiom employees who knew the report was imminent after being contacted by ZachXBT. The situation highlights the irony that the prediction market successfully functioned but rewarded those potentially engaging in the very insider trading it was designed to track, complicated by Polymarket's lack of identity checks.

(Source：CoinDesk)