On February 26, blockchain investigator ZachXBT released a report implicating Axiom Exchange in an insider trading scandal. The report alleges that Broox Bauer, a senior employee at Axiom, exploited internal administrative privileges to access users' private wallet data for insider trading. This misconduct reportedly involved an organized scheme using Axiom's internal control dashboard to query sensitive user information, which was then used for arbitrage over a ten-month period. Axiom Exchange, a DeFi platform with over $390 million in revenue, responded by revoking permissions and launching an investigation. However, the incident highlights significant systemic failures in access controls and data governance. The report suggests that the abuse of access may have been widespread, involving other employees, and raises concerns about the lack of audit logs and anomaly detection mechanisms within Axiom's systems. This case underscores the challenges Web3 startups face in balancing rapid growth with robust compliance and data governance.