Key Takeaways
- A Binance employee was caught in an insider trading scheme using confidential information.
- A $100,000 reward is being distributed among whistleblowers who reported the incident.
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Binance has suspended an employee after an internal investigation revealed the individual engaged in insider trading linked to a token generation event (TGE), according to a Monday announcement from Binance Wallet’s X account.
Investigation Findings on Staff Misconduct in Trading
Dear Binance Users and Community Members,
On March 23, 2025, Binance’s Internal Audit team received a complaint alleging that one of our staff members engaged in front-running trades using insider information to gain… pic.twitter.com/SVVvu4rX1x
— Binance Wallet (@BinanceWallet) March 25, 2025
According to Binance, the employee, who recently transferred to Binance’s Wallet team from a business development role at BNB Chain, allegedly used multiple wallet addresses to purchase tokens before their public launch announcement.
After the project publicly disclosed the TGE, the employee sold part of their holdings, securing substantial profits while retaining additional tokens with significant unrealized gains.
“Leveraging information from his former position as well as his familiarity with on-chain projects, the employee was aware the project was planning a Token Generation Event (TGE) and anticipated it would generate significant community interest,” Binance stated.
The exchange’s Internal Audit team launched an investigation on March 23 after receiving a complaint about alleged front-running.
The investigation found that the individual used confidential knowledge gained from their former position.
Binance said it will cooperate with relevant authorities and pursue legal action against the employee. The exchange is distributing a $100,000 reward equally among four whistleblowers who reported the incident through official channels.
“At Binance, we uphold a user-first principle and are committed to transparency, fairness, and integrity. We have zero tolerance for any misconduct,” the exchange said.
The company also encouraged community members to report any future concerns via its official audit email and promised to uphold a safe and trustworthy trading ecosystem.
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