Polymarket Whales Net $1.2M on ZachXBT Scoop
A wave of insider trading allegations has rocked the prediction market sector today, headlined by massive profits surrounding a crypto investigation. According to Cointelegraph, the top eight wallets on Polymarket collectively netted over $1.2 million by betting correctly that ZachXBT’s latest investigation would target Axiom.
The market, which attracted over $7 million in total volume, saw highly suspicious activity prior to the public release of the findings. CoinDesk reports that one specific trader managed to turn a $0.14 average entry on shares into a staggering $411,000 profit. This prescient trading has raised alarm bells among blockchain researchers, as the bets were placed before ZachXBT publicly named the target of his exposé.
Kalshi Crackdown Hits MrBeast Team and Politics
The scrutiny is not limited to crypto-native platforms. Regulated exchange Kalshi is at the center of two separate insider trading probes today. Decrypt confirmed that Beast Industries has suspended a video editor while the company investigates allegations of insider trading on the platform. CEO Jeff Housenbold acknowledged the internal probe, signaling a zero-tolerance approach to market manipulation.
Simultaneously, Kalshi has taken direct action against public figures. The platform banned a US politician over alleged trading violations. This coincides with a new advisory from the CFTC, where chair Mike Selig warned that the agency is actively monitoring prediction markets to catch bad actors.
Regulatory Headwinds in Europe
While US platforms battle insider threats, Polymarket faces existential challenges in Europe. The Dutch regulator has ordered Adventure One, a Polymarket affiliate, to halt operations for allegedly offering illegal bets on Dutch elections.
As regulatory and internal scrutiny intensifies, investors are increasingly turning to advanced market analytics tools to differentiate between organic crowd sentiment and suspicious insider flows.