Binance suspended an employee for using information obtained from their former role with BNB Chain in order to lead a token release, according to the statement issued on Monday.
The employee's "misconduct" involved "front-running trades using insider information" done to "gain improper profits," Binance's Internal Audit team The following is a list of the most recent and relevant articles. On X.
Binance’s preliminary investigation revealed that it had found proof the employee bought tokens using multiple wallet addresses, before any Token Generation Event announcement was publicized.
Binance received the complaint on 23 March. Binance declined to name the employee. The exchange did not immediately reply. Decrypt’s Request for comments
The employee's behavior "constitutes front-running based on non-public information," Binance wrote in its announcement, adding that it was a "clear breach" of its company policy.
The statement details how the employee allegedly sold part of their holdings shortly after the announcement, realizing "significant profits" while retaining tokens with "considerable unrealized gains."
Binance’s findings refer to front-running as trading that is based on information not made public about an upcoming event likely to affect the price of assets.
Binance further revealed that the employee reportedly joined the Wallet team just one month ago after previously taking a role in business development at BNB Chain, the company's blockchain ecosystem, formerly known as Binance Smart Chain.
Binance stated its investigation found no evidence of insider trading within the team itself, emphasizing it has "no business relationship or collaboration" with the project supposedly involved. Binance has not named the project.
The company said it is committed to "proactively” cooperating with relevant authorities and pursuing "appropriate legal action."
The exchange distributed a $100,000 reward equally among four whistleblowers who submitted reports through the company's official channel.
Binance’s co-founder Yi He spoke to the media in early February. You can also find out more about the offer. Up to $10,000 is available in rewards for employees who inform their colleagues about insider trading and leakage.
The case bears similarities to Coinbase's 2023 incident Former manager Ishan wahi admitted sharing information on token lists.
Sebastian Sinclair edited the book
