I just came across a pretty serious issue: blockchain investigator ZachXBT revealed that an internal employee at Axiom Exchange is suspected of abusing their privileges. Specifically, this high-level staff member used internal tools to illegally access sensitive user data, including wallet addresses, and then shared this information with a small team to track the trading activities of crypto KOLs.

According to ZachXBT's investigation, this guy even boasted in recordings that he could track any Axiom user’s information through referral codes, wallet addresses, or UIDs. Even more outrageous, they employed a strategy of gradually increasing tracking frequency to avoid detection. The goal of this approach was clear—target traders who hoard meme coins and publicly recommend them, so they could get early insights into their moves and front-run their positions.

ZachXBT also used blockchain address query techniques to trace this employee’s main wallet, discovering that funds flowed to multiple CEX deposit addresses. However, he also admitted that without internal logs from Axiom, it’s very difficult to establish 100% insider trading evidence based solely on on-chain data.

Aximon responded on X, saying they were shocked and disappointed that someone on the team abused internal tools, and that they have revoked the relevant access rights, promising to continue investigating and hold those responsible accountable. But this response clearly did not quell market concerns.

Interestingly, this incident caused a big stir on the prediction market Polymarket. Earlier this week, Meteora was still the top speculation target with a 43% odds, but by Thursday, Axiom jumped to the top spot with a 35% odds, and trading volume exceeded $30 million. This reflects traders’ high level of attention to the event.

Honestly, this issue reveals some deeper problems. As blockchain technology advances, tracking user information through address queries becomes easier, but that also increases the risk of data misuse. Internal employees with system privileges make the defenses even more fragile. This incident is especially sensitive in the context of increasingly strict scrutiny of trading behavior and data security in the crypto industry. No wonder the market reacted so strongly.