Blockchain investigator ZachXBT claims Axiom staff member engaged in insider trading.

Also: Ethereum’s “strawmap”, Robinhood chain update and OpenAI + smart contracts

(geralt/Pixabay modified by CoinDesk)

What to know:

Welcome to The Protocol, CoinDesk’s weekly summary of the key developments in cryptocurrency technology. I’m Margaux Nijkerk, a reporter at CoinDesk.

In this edition:

• ZachXBT claims an Axiom employee engaged in insider trading
• Ethereum Foundation unveils a highly ambitious roadmap, aiming for transaction finality in seconds by 2029
• Robinhood vs. Vitalik: The rationale behind the trading app creating its own L2 while Ethereum’s creator expresses skepticism
• Sam Altman’s OpenAI introduces ‘EVMbench’ to evaluate if AI can enhance the security of crypto’s smart contracts

Network News

AXIOM EMPLOYEE ALLEGEDLY ENGAGED IN INSIDER TRADING ACCORDING TO ZACHXBT: Blockchain investigator ZachXBT reported that a senior staff member at Axiom Exchange, an onchain trading platform, purportedly exploited internal access to user data to monitor private wallets and possibly trade memecoins based on insider information. In a post shared on X, ZachXBT alleged that Broox Bauer, a senior business development staffer at Axiom based in New York, utilized internal dashboards to access sensitive user data—such as linked wallet addresses—and provided this information to a select group that tracked trades of notable crypto influencers. Axiom, which was established in 2024 by Mist and Cal and is part of Y Combinator’s Winter 2025 cohort, has reportedly generated over $390 million in revenue thus far, according to the investigator. ZachXBT noted he was hired to probe allegations of misuse of internal tools but did not disclose who engaged his services. In audio recordings shared in the thread, an individual believed to be Bauer purportedly states he can monitor “any Axiom user” via referral code, wallet address, or UID and “discover anything related to that individual.” In the same audio, he describes initially looking into 10–20 wallets and gradually increasing his activity “to avoid raising suspicion.” — Oliver Knight Read more.

EF ‘STRAWMAP’ ROADMAP RELEASED: The Ethereum Foundation has released a roadmap that appears to be focused on the next decade rather than merely navigating the current quarter. The document, termed the “strawmap” and unveiled Wednesday by EF researcher Justin Drake, outlines a strategy for seven hard forks through 2029. Hard forks are comprehensive software upgrades that necessitate implementation by every node, representing the most significant type of change Ethereum can undertake. The strategy is structured around five objectives referred to as “north stars.” These encompass a quicker layer 1 with transaction finality achieved in seconds; significantly enhanced layer-1 throughput capable of approximately 10,000 transactions per second (denoted as “gigagas” scale); Layer-2 networks achieving “teragas” throughput levels, or around 10 million TPS; post-quantum cryptography; and integrated privacy through shielded ETH transfers. — Shaurya Malwa Read more.

ROBINHOOD CHAIN TESTNET UPDATE: Robinhood’s (HOOD) testnet recorded 4 million transactions in the initial week following its launch, according to CEO Vlad Tenev’s announcement on X. The Robinhood Chain, which emphasizes tokenization and trading, emerges as centralized exchanges aim to establish their own blockchain frameworks while the wider Ethereum ecosystem contemplates its trajectory. “Developers are actively working on our L2, tailored for tokenized real-world assets and onchain financial services,” Tenev stated. Testnets serve as safe environments for developers to trial code and experimental functionalities prior to the mainnet launch. The two phases in a network’s evolution can be likened to a flight simulator and a commercial flight. The Robinhood Chain’s testnet has been introduced amidst a broader reassessment within the Ethereum community. Earlier this month, Ethereum co-founder Vitalik Buterin remarked that the protocol’s long-established layer-2 (L2) rollup-centric strategy “no longer makes sense,” contending that many rollups have not achieved complete decentralization and that Ethereum’s base layer is scaling more rapidly than anticipated. — Margaux Nijkerk Read more.

OPENAI EXPANDS INTO SMART CONTRACTS: OpenAI is furthering its involvement in crypto security with the launch of EVMbench, a testing framework aimed at assessing how well artificial intelligence can comprehend and potentially safeguard smart contracts on Ethereum and comparable blockchains. Smart contracts, which are self-executing code deployed on platforms like Ethereum, form the foundation of decentralized exchanges, lending protocols, and a variety of onchain financial services. Given that these contracts are generally immutable post-deployment, vulnerabilities can be critical. EVMbench represents OpenAI’s endeavor to determine whether contemporary AI systems can assist in averting these issues. Developed in partnership with crypto investment firm Paradigm, the benchmark utilizes real-world smart contract vulnerabilities identified through audits and security competitions. The system evaluates performance across three main capabilities: recognizing security flaws, exploiting those flaws in a controlled setting, and rectifying the vulnerable code without compromising the contracts. OpenAI aims to establish a clear standard for assessing AI systems in blockchain security, particularly as decentralized finance continues to protect billions of dollars in user assets. The importance of smart contracts is escalating. — Margaux Nijkerk Read more.

In Other News

• Meta, the U.S. technology giant led by Facebook founder Mark Zuckerberg, plans to enter the stablecoin market later this year, contingent upon successful collaboration with a third-party firm to enable payments using dollar-pegged token technology, according to three sources familiar with the intentions. The tech conglomerate, which owns platforms like Facebook, WhatsApp, and Instagram and boasts over 3 billion users, aims to initiate its stablecoin integration in the early part of the second half of this year, as stated by one of the individuals, who requested anonymity due to the confidential nature of the plans. Meta is seeking to incorporate a vendor to assist in managing stablecoin-backed payments and to establish a new wallet, according to the source. A second source noted that Meta has issued a request for proposals (RFP) to third-party companies, mentioning Stripe as a potential candidate for piloting the stablecoin. The introduction of stablecoins would enable Meta to create payment pathways for its vast user base while avoiding costly traditional banking fees, potentially positioning it as a leader in “social commerce” and international remittances. — Ian Allison Read more.
• American Bitcoin (ABTC), the bitcoin mining firm supported by President Donald Trump’s family, announced a loss of $59 million in the fourth quarter as the declining value of the leading cryptocurrency diminished its asset worth. The company, which went public in September shortly before the largest cryptocurrency achieved a record high, is pursuing a dual approach of mining and acquisitions, with about one-third of its BTC derived from mining activities. The remainder comes from market purchases and strategic deals, largely financed by equity sales. The company, which is 20% owned by Eric Trump and Donald Trump Jr., generated $150.5 million through an at-the-market stock offering during the quarter. This capital allowed it to increase its per-share bitcoin holdings by nearly 50%. It now possesses over 6,000 BTC, as reported. During the quarter, it mined bitcoin at a 53% gross margin, indicating production costs were significantly below market prices despite the cryptocurrency’s decline. Revenue increased by 22% compared to the third quarter. — Francesco Rodrigues & James Van Straten Read more.

Regulatory and Policy

• The Indiana state legislature has authorized public retirement and savings funds to invest in digital assets and spot exchange-traded funds (ETFs), while affirming residents’ access to cryptocurrency investments. Governor Mike Braun is anticipated to sign HB 1042 into law within the next 10 days. Indiana joins at least seven other states, including Wyoming, Wisconsin, Michigan, and Arizona, that have moved to incorporate crypto-linked products into public investment frameworks. Nearly half of the state governments in the U.S. are either on track to invest some of their funds in crypto or have already done so, a trend that has largely emerged since President Donald Trump directed his administration to establish a Bitcoin Strategic Reserve. — Olivier Acuna Read more.
• The U.S. Treasury Department has sanctioned a Russian entity, Operation Zero, along with the individuals associated with it, including Sergey Sergeyevich Zelenyuk, for allegedly purchasing stolen cyber tools for millions in cryptocurrency and reselling those technologies, which were designed for U.S. governmental use. The tools were reportedly originally stolen by an Australian citizen, Peter Williams, who previously worked at the defense contractor that developed the national-security-focused software “for the exclusive use of the U.S. government and select allies.” Williams pleaded guilty last year to charges of selling trade secrets. “Treasury will continue to collaborate with the rest of the Trump Administration to protect sensitive American intellectual property and ensure our national security,” stated Treasury Secretary Scott Bessent. Zelenyuk and the others are reported to be the first individuals sanctioned under the Protecting American Intellectual Property Act. — Jesse Hamilton Read more.

Calendar

• Mar. 24-26, 2026: Digital Asset Summit, New York City
• Mar. 30-Apr. 2, 2026: EthCC, Cannes
• Apr.15-16, 2026: Paris Blockchain Week, Paris
• Apr. 29-30, 2026: Token2049, Dubai
• May 5-7, 2026: Consensus, Miami
• Sept. 29-Oct.1, 2026: Korea Blockchain Week, Seoul
• Oct. 7-8, 2026: Token2049, Singapore
• Nov. 3-6, 2026: Devcon, Mumbai
• Nov. 15-17, 2026: Solana Breakpoint, London