Crypto Morning Post: ZachXBT reveals insider trading by Axiom executives, Magic Eden will close Bitcoin and EVM markets Author: Deep Tide TechFlow Market Dynamics Yesterday The number of initial jobless claims in the United States for the week ending February 21 was 212000, with an expected 215000. The number of initial jobless claims in the United States for the week ending February 21 was 212000, with an expected 215000, with the previous value revised from 206000 to 208000. Reuters: The US Commodity Futures Trading Commission (CFTC) stated on Wednesday that it has the authority to regulate illegal trading in the prediction market, following reports of two insider trading cases by the prediction market platform Kalshi to the agency. The CFTC has declared that it has "full regulatory authority" over misconduct in event market contracts and cited Kalshi's report that the company has flagged and frozen trading accounts related to two insider trading incidents. With the development of the prediction market, concerns about insider trading are increasing, and a senior official from the US Department of Justice has listed it as a key area of law enforcement this month. State level gambling regulatory agencies also seek to regulate such markets as they compete with casinos and traditional gambling companies. Previously, Kalshi cracked down on insider trading and imposed bans and fines on an employee of MrBeast and a former California gubernatorial candidate. According to Eleanor Terrett, lawmakers from both parties in the United States have proposed a bill to protect blockchain developers from criminal charges. Republican lawmakers Fitzgerald (Wisconsin) and Cline (Virginia), along with Democratic Congressman Lofgren (California), jointly proposed the "2026 Blockchain Innovation Act" to clarify the scope of application of Section 1960 of the Criminal Code. The bill clearly stipulates that Article 1960 only applies to entities that control customer funds, not developers who simply write code. Previously, in cases such as TornadoCash and SamouraiWallet, regulatory agencies had applied this clause to unmanaged software developers, triggering a strong backlash in the encryption industry. This bill will provide legal protection for blockchain developers and address the long-standing conflict between cryptocurrency innovation and regulation. The OCC has released a proposed rule to implement the GENIUS Act, seeking public opinion. According to crypto journalist Eleanor Terrett, the OCC has released a proposed rule to implement the GENIUS Act and is currently soliciting public opinion. This framework will establish basic rules for licensed stablecoin issuers and foreign payment stablecoin issuers under OCC supervision, while covering specific custody activities. OCC Inspector General Jonathan Gould stated that the goal of this rule is to establish a system where stablecoins can thrive in a secure and robust manner. It is worth noting that the rule currently does not include provisions related to anti money laundering (BSA/AML) and the Office of Foreign Assets Control (OFAC), which will be handled separately in coordination with the Ministry of Finance. ZachXBT: Axiom trading platform executives abuse internal tools for insider trading. ZachXBT exposes Axiom trading platform senior business development manager Broox Bauer, who has been suspected of abusing internal system access since early 2025 to track users' private wallet activities through referral codes, wallet addresses, or user IDs for insider trading. Evidence shows that Broox shared internal dashboard screenshots in April and August 2025, leaking the private wallets and registration information of multiple traders. Axiom was founded by Mist and Cal in 2024, and has grown rapidly after being incubated by Y-Combinator. Currently, it has generated over $390 million in revenue. According to Blockspace, NFT trading platform Magic Eden plans to shut down its Bitcoin and EVM markets and terminate its multi chain wallet services. Insiders revealed that Magic Eden will announce this decision as early as this Friday and plans to close the Bitcoin and EVM markets in the first week of March. Subsequently, its multi chain wallet will enter export only mode in mid March and completely cease service in early April. It is reported that Magic Eden will continue to support Solana NFTs and assets, indicating that the company is returning to its original Solana ecosystem. Previously, Magic Eden was the dominant market for Bitcoin Ordinals (Bitcoin specific NFT standards). Jack Lu, CEO of Magic Eden, has previously stated that the company is shifting from the NFT market to new directions in the "crypto entertainment" sector, such as the prediction market. Caixin: Rumors circulated that Chinese regulatory authorities are reviewing Jane Street's trading behavior in the Chinese ETF market. According to Caixin, there are rumors that Chinese regulatory authorities are reviewing Jane Street's trading behavior in the Chinese ETF market. But a person close to Jane Street said, 'I know nothing about these rumors and have no reason to believe they are true. These rumors should not be associated with Jane Street.'. ”This week, Jane Street and its co founders and two employees were accused of insider trading, fraud, and market manipulation, which were also accused of accelerating the $40 billion collapse of TerraUSD (UST) stablecoin and its sister token Luna in 2022. Established in 1999, Jane Street is one of the world's largest proprietary quantitative trading companies, with a net trading revenue of over $20 billion and a net profit of nearly $13 billion in 2024. Unlike hedge funds, Jane Street does not accept external client funds and therefore has disclosure obligations much lower than traditional asset management agencies. This structure has kept it mysterious for a long time. The official account article "Chen Zhi Case and Zhao Changpeng Case: The United States Gained Nearly $20 Billion from It" was released on the World Wide Web. The official account article "Chen Zhi Case and Zhao Changpeng Case: The United States Gained Nearly $20 Billion from It" was released on the World Wide Web. According to the report jointly released by China's National Computer Virus Emergency Response Center and other institutions, the United States used technology hegemony to harvest global virtual currency assets on a large scale. Between 2022 and 2025, the United States has confiscated over $30 billion worth of global virtual currency assets through various cases, with the Chen Zhi case confiscating approximately 127000 bitcoins worth around $15 billion, accounting for 50%; In the case of Binance founder Zhao Changpeng, the United States obtained a fine of $4.3 billion through dual civil and criminal accountability. The report also revealed that from 2023 to 2025, hacker groups with US government support will launch targeted attacks on more than 20 mainstream virtual currency exchanges worldwide, stealing user wallet private keys, platform transaction records, and other information. The report points out that the United States has not only increased fiscal revenue through these actions, but also strengthened the dependence of global virtual currency asset trading on the US dollar. SBF: The biggest question about cryptocurrency is whether AI will use it as a payment method. FTX founder SBF's X account posted, "The biggest question in the cryptocurrency field is: Will AI use it? Assuming that an instance of ChatGPT or Claude requires more computing resources. Does it support wire transfer, credit card, or cryptocurrency payment? On the one hand, traditional financial models are not suitable for AI. For example, how do they conduct KYC authentication? They don't have passports, addresses, social security numbers, or even names. The effectiveness of cryptocurrency is much better - it is already digital, does not require permission, AI can already query blockchain, and so on. On the other hand, we may see a "proxy" model where each AI is seen as an agent of a specific human, who is responsible for KYC authentication, accountable for AI behavior, and so on. This raises a related question: who should bear legal responsibility for the behavior of AI? Anyway, to integrate AI into the fields of transactions and payments, some work still needs to be done. This job is either native digitization and cryptocurrency based, or it relies on human "manipulators" to control AI. Its direction has a huge impact on the world. One of them is the future of cryptocurrency. ”Supreme People's Court: Next step will focus on cracking down on related crimes such as "money laundering" using virtual currencies and underground banks. According to a report by Shanghai Securities News, Wang Bin, the head of the Criminal Third Division of the Supreme People's Court, stated at a press conference on "People's Courts Punishing Telecommunications Network Fraud and Property Infringement Crimes in accordance with the Law" held by the Supreme People's Court on February 26 that the next step will be to crack down on key members and backbone members of criminal groups, telecom fraud "financiers", "snake heads" who organize illegal immigration, organizations that provide armed shelter for cross-border telecom fraud crimes, as well as violent crimes such as intentional homicide, intentional injury, and kidnapping committed during the process of telecom fraud, and related crimes such as "money laundering" using virtual currencies and underground banks. Wang Bin also stated that the people's courts will increase the application of property penalties for electronic fraud criminals in accordance with the law, prevent criminals from benefiting economically, guide those involved in "two card" aiding and concealing crimes to voluntarily compensate victims, consider returning stolen goods and compensation as a circumstance for confession and repentance, and impose lenient sentences. Criminals who have the ability but refuse to return stolen goods and compensation will be severely punished in accordance with the law. Cryptocurrency trading platform STS Digital has completed a $30 million financing round, led by CMT Digital. According to Fortune, STS Digital recently announced the completion of a $30 million financing round, led by CMT Digital, with participation from Kraken, Arrington Capital, and Fidelity's investment division. This platform focuses on providing institutional investors with option trading services for over 400 cryptocurrencies and serving as a market maker to provide liquidity. STS Digital was founded in 2022 by former Credit Suisse and UBS traders Maxime Seiler and Gideon Hyams, and has since grown to nearly 50 employees. The company's revenue will triple between 2024 and 2025, and it has achieved profitability. Its clients include well-known cryptocurrency companies such as Uniswap Foundation. The company plans to use this round of financing to expand the transaction scale, serve larger institutional clients, and increase the number of employees. During the volatility of the cryptocurrency market, STS Digital believes that option trading provides institutional investors with better risk management tools compared to perpetual contracts. Recommended reading for market trends: ZachXBT investigation full text: Axiom employees use internal permissions for insider trading. This article accuses multiple employees of the cryptocurrency trading platform Axiom of abusing internal permissions for insider trading, involving the use of user wallet information to help accomplices quickly profit $200000. This behavior exposed a significant loophole in the platform's permission control. The investigation report revealed in detail the operational details of the employees involved, including using backend data to track user information, collaborating with team members to develop rules, and transferring funds through centralized exchanges. The report emphasizes that Axiom lacks monitoring mechanisms and permission management, and recommends further legal action. Token going global, selling Chinese electricity to the world. This article explores how China's AI big model and related technologies can achieve "electricity going global" through the form of tokens, and occupy an important position in the global developer market. This phenomenon is seen as a new technological and economic game, especially with profound significance in the strategic competition between China and the United States. In this pig killing dish, AI is responsible for dating and also for creating fake lawyer licenses. This article provides a detailed description of the operation of fraud gangs, including how to use AI for romantic conversations, generate false information, estimate the "extracted value" of victims, and further defraud victims of their money through fake law firms and dating platforms. The article also mentioned that although AI technology has not changed the essence of fraud, it significantly reduces the cost of fraud and allows the scale of fraud to expand. In addition, the article also emphasizes the potential risks of AI technology, especially in the case of locally deployed open source models, which may be more difficult to track and prevent. On February 26th, market review: Nvidia's financial report sparked an AI frenzy, and Circle led the cryptocurrency market to counterattack fiercely. This article discusses how Nvidia's financial report sparked an AI craze, and the cryptocurrency market was boosted by Circle's financial report, with Bitcoin soaring. The importance of stablecoins as the infrastructure of the cryptocurrency market is evident, and the increase in USDC circulation indicates that funds are flowing into the cryptocurrency market. US tech stocks rebounded strongly, led by the Nasdaq, and Nvidia's financial report further boosted the market. We have created a Perp DEX, which everyone says is incredible. This article introduces a decentralized exchange called Perpl (DEX), which is the first decentralized trading platform to achieve full on chain execution, a true central limit order book (CLOB), and efficient gas fee support. The article provides a detailed exploration of Perpl's technical architecture, performance optimization, market advantages, and its potential impact on the decentralized finance (DeFi) ecosystem.