On Tuesday, Binance, a leading global cryptocurrency exchange, suspended an employee for allegedly engaging in front-running trades using insider information.
The company disclosed the findings of an internal investigation following a whistleblower complaint received on March 23.
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Investigation uncovers misconduct
According to Binance, the employee—previously part of the BNB Chain business development team—leveraged non-public information from his former role to purchase tokens before a project’s public launch.
“The staff member used multiple linked wallet addresses to buy a large volume of tokens before the Token Generation Event (TGE) announcement,” the exchange stated. “He then sold portions of his holdings for significant profits, breaching company policy.”
While the employee was working in Binance’s Wallet team at the time of the incident, the investigation confirmed that the team had no access to insider information about the project in question. However, his prior role at BNB Chain allowed him to exploit confidential knowledge—an act Binance termed “a clear violation of trust.”
Binance took swift action, suspending the employee immediately. “We have zero tolerance for misconduct,” the company emphasized. “We are cooperating with relevant authorities and will pursue legal action where applicable.”
The exchange also assured that any assets tied to the misconduct would be handled in compliance with regulations.
To promote transparency, Binance awarded $100,000 to four whistleblowers who submitted valid reports via its official channel (audit@binance.com).
“We appreciate the community’s vigilance,” the statement read while urging future reports to be shared exclusively through official channels for security reasons.
Binance reiterated its dedication to maintaining a fair trading environment. “We will strengthen internal controls to prevent such incidents,” the exchange pledged, thanking users for their trust.
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About Binance’s wallet
Binance Wallet is a non-custodial wallet offering seamless access to decentralised finance (DeFi) and Web3 services. Supporting multiple blockchains, it enables users to store, swap, and manage cryptocurrencies securely.
It’s also Integrated with Binance’s ecosystem to provide easy asset transfers between the exchange and decentralised apps (dApps).
With robust security features and a user-friendly interface, Binance Wallet empowers traders and investors with full control over their digital assets.