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- A Binance employee misused insider knowledge for personal gains.
- Binance took swift action, suspending the individual.
- Whistleblowers received a $100,000 reward for reporting misconduct.
Binance conducted an internal investigation after receiving a complaint about an employee involved in frontrunning trades. The complaint, filed on March 23, 2025, alleged that the employee used insider knowledge to gain unfair profits. Binance’s internal audit team took the matter seriously and launched a thorough review.
The accused employee worked in the Binance Wallet team. However, their previous role in the BNB Chain business development team granted them access to confidential project details. One such project was preparing for a Token Generation Event (TGE), expected to attract significant investor interest.
Before the public announcement, the employee used multiple linked wallet addresses to buy a large number of the project’s tokens. Once the TGE became public, the token’s price surged due to increased community interest.
The employee then sold part of their holdings for a substantial profit while retaining tokens that held significant unrealized gains. This confirmed that the Wallet team had no direct connection with the project in question.
Binance Acts on Insider Misconduct
However, the employee leveraged prior knowledge from their previous role to engage in this misconduct. This act violated Binance’s internal policies and ethical standards. Upon confirming the violation, Binance acted swiftly. The company immediately suspended the employee and is now conducting a further disciplinary review. Binance also pledged full cooperation with legal authorities in the employee’s jurisdiction.
Any assets linked to the misconduct will be handled according to applicable laws and regulations. Binance remains firm in its commitment to maintaining fair trading practices. Employees are expected to follow strict ethical guidelines to prevent similar incidents.
The company reassured users that it is continuously strengthening internal controls to prevent misconduct. To maintain integrity, Binance will continue refining its policies and reinforcing compliance measures. Strict monitoring of employee activities will help detect any unethical behavior early.
Whistleblowers Rewarded for Integrity
Community oversight played a key role in uncovering this case. Binance received multiple reports through its official whistleblowing channel. After verifying the reports, the company selected four whistleblowers to receive an equal share of the $100,000 reward.
Some reports appeared on social media, but Binance emphasized that only submissions through its official email qualified for rewards. This ensures the legitimacy and security of whistleblower reports.
The company urged users to submit any future leads through the designated channel to maintain confidentiality and prevent misinformation. Binance remains committed to transparency, fairness, and user trust.
The company expressed gratitude to the community for its continued support in upholding a safe and ethical trading environment. By strengthening policies and encouraging community participation, Binance aims to set high standards for the cryptocurrency industry.
