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Binance suspends employees over insider trading allegations

Binance has suspended one of its employees who allegedly used insider information from a previous job to gain an unfair advantage in token trading. Since receiving the complaint, the company has launched an internal investigation and cooperated with the authorities for further legal action.

Binance has suspended multiple employees over insider trading allegations, raising questions about internal oversight and regulatory compliance. As investigations unfold, the crypto community watches closely for potential consequences on Binance’s operations and trustworthiness.

A whistleblower complaint prompted the launch of an internal investigation on March 23. Binance believes that a new employee in the Binance Wallet team was aware of an upcoming token generation event (TGE) and anticipated a prominent position. The staff bought many tokens using multiple linked wallets before the public announcement of the project. They later sold the majority of these tokens for substantial profits.

The individual used the information obtained from a prior position illegally. Moreover, they acted on that inside information in a front-running manner. These are clear violations of Binance’s internal policy, the company said on X.

Due to this incident, the employee was suspended immediately, with Binance mentioning that further disciplinary actions and legal measures could follow. The firm will also assist the authorities in resolving this issue.

After several community members on X named a possible suspect, the allegations came into the limelight. He is a former manager at BNB Chain. Binance may not have named the person publicly, but reports suggest a wallet associated with the accused bagged around $82,400 from token trades.

Due to the public calling out the issue, Binance stated that it will share a $100,000 reward among four anonymous whistleblowers who submitted reports via its official channels.

This case further proves that crypto exchanges have problems preventing insider trading allegations and more. Binance has confirmed that it will take appropriate measures to enforce its policies on market integrity.

author avatar
Satpal S
Satpal is an Editor and Author at 4C Media Co, specializing in all stories and news related to crypto and finance.
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