Binance suspended an employee after an internal investigation into insider trading allegations. The company stated that further legal action might follow.
The issue began on March 23, 2025, when Binance’s internal audit team received a complaint. The employee involved, who works on the Binance Wallet team, is accused of using non-public information to make lucrative trades. Binance took the complaint seriously and launched an instant investigation.
Results showed that the employee had formerly been in business development at BNB Chain before joining the Wallet team last month. From his former role, he had known that a project was supposed to have a token generation event (TGE).
Binance cracks down on misconduct
In anticipation of high market demand, he used multiple linked wallet addresses to buy a large volume of tokens ahead of the public launch. Once the token launch was officially announced, he sold some of his holdings for massive gains, with the remaining tokens carrying high, unrealized gains.
Binance confirmed that the Binance Wallet team was not privy to the private project details. Nevertheless, the staff member misused knowledge gained from a prior role in violation of company policy. The investigation concluded that this constituted front-running with privileged information.
As a disciplinary measure, the employee was immediately suspended by Binance. The company also said that it would collaborate with the authorities in the location of the employee. It may launch legal action and dispose of any assets related to the misconduct according to the law.
Binance strengthens integrity measures
Binance reaffirmed its integrity, fairness, and transparency values. It assured users that it would strengthen internal controls to prevent such occurrences in the future. It also urged the community to report malfeasance through its official whistleblowing channel.
As a reward to the individuals who made valid reports, this distributed a total of $100,000 to confirmed whistleblowers. The firm acknowledged reports made on social media but clarified that the reward was exclusively for reports made via its official channel.
Binance urged future potential whistleblowers to report through proper channels so as to be verified and consequently protected. Binance concluded by thanking its community for continued trust and support. The company reiterated its dedication to ensuring a transparent and safe trading environment.
