A rather ironic story has emerged that insider trading is happening on Polymarket.

The moment ZachXBT announced he would expose insider trading at Axiom, Polymarket turned it into a prediction market. They allowed users to bet on which company would be named. It’s reported that about $40 million in trading volume has accumulated since Monday, showing high market interest.

But here’s where it gets interesting. Someone clearly knew the answer in advance. According to Lookonchain’s analysis, 12 wallets placed large bets before Axiom was publicly announced, making over $1 million in profit. Another analysis shows five wallets wagered $50k and earned $266,000. The account predictorxyz bought 477,415 shares at an average of $0.14 and is now sitting on a profit of $411,000. That’s about a 7x return.

What’s notable is that this profit didn’t come from spreading guesses based on information, but rather from a small number of wallets controlling trades on Axiom’s side. For most of the week, Meteora led the market, but late Wednesday night, the probability tilted toward Axiom, peaking at 46.2%. This was just before ZachXBT published his findings Thursday morning.

ZachXBT himself admits that he contacted Axiom for comments and conducted multiple interviews before publication. This suggests that several Axiom insiders likely had prior knowledge of the report. They may have placed bets directly or advised others based on that information—either way, an information leak was probably unavoidable.

Since Polymarket is an offshore platform that doesn’t require identity verification, it’s difficult to attribute trades without platform cooperation. In other words, tracking insider trading is practically impossible.

Axiom commented that they were “shocked and disappointed” by the investigation, but did not answer whether employees had placed bets.

The structural irony here is that the system worked exactly as designed. A market created to detect insider trading ended up being exploited for insider trading. Instead of investigators, the people being investigated received the rewards.

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