Almost all top wallets that profited from Polymarket during the ZachXBT investigation show signs of insider trading, according to researcher defioasis.eth.
Over 3,630 Polymarket addresses placed bets on Axiom during the ZachXBT insider investigation, with 56.2% of these addresses turning a profit.
— defioasis.eth (@defioasis) February 27, 2026
— Among the top 10 most profitable addresses, 8 can be considered insider addresses, collectively earning over $1.2 million, characterized by extremely low trading activity, sometimes with only a single bet.
— Three addresses made over $10… pic.twitter.com/mOJ4jEKoS4
According to his findings, of the 3,630 addresses that bet on Axiom, 56.2% closed their positions profitably. The expert provided the following statistics:
- Profits: 47 users earned between $10,000 and $100,000 (total earnings of $1.34 million);
- Major losses: two participants lost over $100,000 (totaling $366,000);
- Average losses: 50 addresses lost between $10,000 and $100,000 (totaling $1.239 million).
Notably, eight of the top 10 most profitable addresses share extremely low trading activity, with some making only a single bet. The total profit for this group exceeded $1.2 million.
Similar conclusions were shared by analysts at Lookonchain, who listed suspicious addresses:
We found that many insiders made big profits by betting on which crypto company @zachxbt would expose for insider trading.
— Lookonchain (@lookonchain) February 26, 2026
Here are 12 suspected insider wallets we identified.
Together, they made a total profit of $1.02M!
Wallets:
0x1d9af60c679cd0b577c3c4ccb4b1a4be4174426d… pic.twitter.com/M5WXqewSUL
According to defioasis.eth, three wallets earned over $100,000, all trading exclusively in markets related to ZachXBT. The highest profit was recorded by the address predictorxyz, totaling $411,600.
Lookonchain noted that this user placed a $65,000 bet when Axiom's odds were just 13.8%. ZachXBT pointed out another suspicious detail: a $70,000 deposit in USDC into a new account.
I investigated the source of funds for ‘predictorxyz’ as I agree $70K USDC funded on a newly created prediction markets account is suspicious.
— ZachXBT (@zachxbt) February 26, 2026
I used timing analysis and traced it back through instant exchanges to the following Solana address:… pic.twitter.com/3mgMhLsgoC
After tracking the transactions of predictorxyz, the on-chain detective discovered that the user is active on the Axiom platform under the alias JustADegen. Their identity remains unidentified.
Insiders on Kalshi
Representatives from the prediction platform Kalshi stated they are currently conducting around 200 investigations related to insider trading.
Today, we are releasing information about two insider cases we recently closed.
— Tarek Mansour (@mansourtarek_) February 25, 2026
Thank you @robertjdenault and team for leading the investigation and working with law enforcement. https://t.co/TcdmzeZw6P
In one incident, the platform banned former California gubernatorial candidate Kyle Langford. Previously a member of the Republican Party, he switched to the Democrats and is now running for the House of Representatives from California's 26th district.
The politician placed a $200 bet on his victory in the election and shared a screenshot on X. As a result, he received a five-year ban from Kalshi and a $2,000 fine. In May, he also posted a video of a $98.76 bet on his own victory.
I just bet $100 💵 that I, Kyle Langford will be the next Governor of California, join me
— Kyle Langford (@KyleLangfordCA) May 24, 2025
(if you believe 🙏🏻) 😎 @Kalshi
🐻✝️🇺🇸 https://t.co/XMk25PuDVr pic.twitter.com/A67hRZb2Za
Kalshi clarified that the account did not generate profits, and the incident was reported to the CFTC.
In addition to the politician, YouTube editor Artem Kaptur also faced sanctions. He collaborated with James Donaldson (MrBeast) — the creator of the eponymous media empire and host of the reality show Beast Games.
From August to September 2025, Kaptur made trades totaling about $4,000 on markets related to outcomes in MrBeast's show. For insider trading, he received a two-year ban and a fine of approximately $20,000.
According to CoinDesk, Kaptur was also suspended from his position at Beast Industries.
CFTC Response
The CFTC confirmed the validity of Kalshi's sanctions against insiders. The regulator reserves the right to conduct its own investigations and hold offenders accountable. The agency noted that both cases may violate U.S. law.
Commission Chairman Michael Selig also stated that the agency has established a special advisory council for prediction markets. This new structure will identify illegal trading in close collaboration with industry participants.
Our exchanges are the @CFTC’s first line of defense in policing insider trading in prediction markets. I'm pleased to see that our exchanges are adhering to their oversight responsibilities as self-regulated organizations and our Enforcement Advisory today reflects that. Let me… https://t.co/ajXnAR8OCw
— Mike Selig (@ChairmanSelig) February 25, 2026
"I want to clarify: if you attempt to manipulate, commit fraud, or trade on insider information, we will find you and hold you accountable," he warned.
Recall that in February, Ethereum co-founder Vitalik Buterin warned about the potential transformation of prediction markets into casinos.