Insiders net over $1m from ZachXBT investigation

Top Polymarket winners on ZachXBT bets show insider signs; flagged wallets netted $1m+.

Nearly all top wallets that profited on Polymarket from the ZachXBT investigation show signs of insider trading, according to a researcher going by defioasis.eth.

一共有超过 3,630 个 Polymarket 地址在 ZachXBT 内幕调查事件中押注“Axiom”，其中 56.2% 的地址获得正向盈利

— Top10 大额获利地址中有 8 个均可被视为是内幕地址，合计盈利超过 120 万美元，基本特点是交易的市场次数极少甚至只有唯一一个

— 有 3 个地址获得超过 10… pic.twitter.com/mOJ4jEKoS4

— defioasis.eth (@defioasis) February 27, 2026

According to his data, of the 3,630 addresses that bet on Axiom, 56.2% finished in the black. He provided the following breakdown:

• profit: 47 users earned between $10,000 and $100,000 (for a combined $1.34m);
• large losses: two participants lost over $100,000 (a total of $366,000);
• mid-sized losses: 50 addresses were down between $10,000 and $100,000 (adding up to $1.239m).

Eight of the ten most profitable addresses exhibited minimal trading activity — sometimes a single bet. Together they netted more than $1.2m.

Analysts at Lookonchain reached similar conclusions, listing suspicious wallets:

We found that many insiders made big profits by betting on which crypto company @zachxbt would expose for insider trading.

Here are 12 suspected insider wallets we identified.

Together, they made a total profit of $1.02M!

Wallets:
0x1d9af60c679cd0b577c3c4ccb4b1a4be4174426d… pic.twitter.com/M5WXqewSUL

— Lookonchain (@lookonchain) February 26, 2026

According to defioasis.eth, three wallets made more than $100,000. All traded solely in the market tied to ZachXBT. The most profitable, predictorxyz, made $411,600.

Lookonchain noted the user wagered $65,000 when Axiom’s odds were just 13.8%. ZachXBT pointed to another red flag: a $70,000 USDC deposit into a newly created account.

I investigated the source of funds for ‘predictorxyz’ as I agree $70K USDC funded on a newly created prediction markets account is suspicious.

I used timing analysis and traced it back through instant exchanges to the following Solana address:… pic.twitter.com/3mgMhLsgoC

— ZachXBT (@zachxbt) February 26, 2026

Tracing predictorxyz’s transactions, the on-chain sleuth found the user is active on Axiom under the handle JustADegen. Their real-world identity has yet to be established.

Insiders at Kalshi

Kalshi, a prediction market, said it is currently pursuing around 200 insider-trading investigations.

Today, we are releasing information about two insider cases we recently closed.

Thank you @robertjdenault and team for leading the investigation and working with law enforcement. https://t.co/TcdmzeZw6P

— Tarek Mansour (@mansourtarek_) February 25, 2026

In one case, the platform banned former California gubernatorial candidate Kyle Langford. He previously belonged to the Republican Party before switching to the Democrats, and is now running for the U.S. House in California’s 26th district.

The politician wagered $200 on his own electoral victory and posted a screenshot on X. 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 himself.

I just bet $100 💵 that I, Kyle Langford will be the next Governor of California, join me
(if you believe 🙏🏻) 😎 @Kalshi

🐻✝️🇺🇸 https://t.co/XMk25PuDVr pic.twitter.com/A67hRZb2Za

— Kyle Langford (@KyleLangfordCA) May 24, 2025

Kalshi said the account did not withdraw any profits, and the incident was reported to the CFTC.

Alongside the politician, YouTube editor Artem Kaptur was sanctioned. He worked with James Donaldson (MrBeast) — the creator of the eponymous media empire and host of the reality show Beast Games.

Between August and September 2025, Kaptur traded roughly $4,000 on markets linked to outcomes on MrBeast’s show. For insider trading he received a two-year ban and a fine of about $20,000.

According to CoinDesk, Kaptur was also suspended from his role at Beast Industries.

CFTC response

The CFTC affirmed that Kalshi’s sanctions against insiders were justified. The regulator reserved the right to conduct its own investigations and pursue enforcement. It said both cases may violate U.S. law.

Chairman Michael Selig also said the agency has created a dedicated advisory committee on prediction markets. The new body will root out 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 be clear: if you attempt to manipulate, commit fraud, or trade on inside information, we will find you and hold you accountable,” he warned.

In February, Ethereum co-founder Vitalik Buterin warned that prediction markets risk turning into a casino.