Betting Markets Show Meteora as Leading Candidate in ZachXBT's Upcoming Crypto Investigation
Over $7 million in wagers have been placed on prediction platforms as participants speculate about which company the renowned crypto investigator will expose on Thursday.
Participants on the Polymarket prediction platform are placing wagers on the identity of the cryptocurrency platform that will become the next subject of investigation by ZachXBT, the digital detective renowned for exposing fraudulent schemes and security breaches in the crypto space.
By Tuesday's count, data from Polymarket indicated a 29% probability that the investigator would identify Meteora, a decentralized liquidity platform, on Thursday as the subject of what has been characterized as a "major investigation" targeting "one of crypto's most profitable businesses." In an X platform post published Monday, the cryptocurrency investigator indicated that the inquiry centers on accusations of insider trading.
Based on statements from ZachXBT, the forthcoming investigation will disclose that several staff members of the as-yet-unidentified exchange "abused internal data to insider trade over a prolonged period of time." Bettors on Polymarket were given the opportunity to wager on various platforms including Meteora, MEXC, Axiom, Wintermute, and additional candidates prior to the scheduled announcement.
By Tuesday's tallies, participants had placed over $7 million in total bets regarding the investigation's target. Nevertheless, the probability percentages displayed on Polymarket event contracts reflect user betting patterns and activity rather than any actual knowledge of which entity ZachXBT intends to reveal.
The nature of ZachXBT's insider trading accusations remained ambiguous, with no clarification on whether they pertained to corporate equity or cryptocurrency assets.
Prediction markets under scrutiny by US policymakers
Within the United States, regulatory bodies at the state level are encountering resistance from Commodity Futures Trading Commission chair Michael Selig, who declared last week that the federal regulatory body possesses "exclusive jurisdiction" over prediction market platforms, drawing parallels between them and derivatives trading venues. Services such as Polymarket, Kalshi, and comparable platforms have faced legal challenges across multiple individual states based on claims that these companies provide unlawful sports betting options to state residents.
Selig issued a warning that any state-level regulatory bodies attempting to contest the CFTC's authority over prediction markets would face legal opposition in court, and mentioned that the agency has submitted amicus briefs to establish its jurisdiction. Meanwhile, Polymarket has mounted its own legal challenge against the state of Massachusetts regarding its enforcement proceedings, making the case for the CFTC's exclusive regulatory authority.