Independent on-chain investigator ZachXBT uncovered a massive abuse of power scheme within the Axiom crypto exchange. Several workers secretly gathered information about private trader transactions starting in early 2025.
The violators used internal access to front-run memecoin trades. This continued until the trading platform's management noticed the problem following the public release of the investigation results.
Inside the Insider Scheme
It all started when Senior Business Development Specialist Broox Bauer abused his work privileges by leveraging internal customer support tools for personal gain. He freely viewed the confidential data of any trader. The service's functionality allowed finding specific accounts via a referral code or ID.
ZachXBT recorded the participation of other Axiom employees in the scheme, including moderators alongside another business development specialist. The investigator identified Bauer's main address plus a cluster of connected wallets. The lack of trading logs makes it difficult to definitively prove insider trading.
Initially, the insider group tracked between ten to twenty addresses so their actions would not raise suspicion with the security team. Well-known crypto influencers served as the primary targets. The perpetrators created a separate address aggregation spreadsheet specifically for them.
The attackers chose a trader considered unscrupulous in the crypto community as one of their targets. He regularly bought up a significant portion of the memecoin supply right before publishing promotional posts for his audience. Bauer used this information to secure profits prior to the public increase in coin prices.
Leaked internal call recordings confirm the intentions of the scheme participants to profit from the trades of others. Bauer discussed the procedure for requesting checks on specific accounts in detail with his colleagues.
Platform Response
Following the publication of the investigation results, Axiom representatives released an official statement. They promised to conduct an internal review to hold the guilty parties accountable.
The team stated they immediately revoked access to the compromised monitoring tools.
ZachXBT suggests handing the case over to the Southern District of New York prosecutors due to Bauer's current place of residence.
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