Internal Audit Reveals Insider Trading Based on Confidential Info
Binance has suspended a Wallet team employee for allegedly using non-public information from their prior role at BNB Chain to conduct insider trading. According to Binance's internal audit team, the employee front-ran token launches by purchasing assets ahead of public announcements.
The misconduct reportedly involved multiple wallet addresses and token sales that netted “significant profits,” Binance wrote in a statement. While the individual has not been named, Binance confirmed the employee had been with the Wallet division for only a month and previously held a business development role at BNB Chain.
Cracking Down on Insider Misconduct
Binance emphasized that the employee’s actions violated its internal policies and that the company has taken disciplinary action. The investigation revealed no broader insider involvement, and the firm maintains no direct ties with the token project in question.
In response, Binance reiterated its commitment to integrity and transparency, adding that it had distributed a $100,000 reward among four whistleblowers. This follows co-founder Yi He’s earlier offer of up to $10,000 bounties to employees who report insider misconduct.
The case draws comparisons to past incidents in the crypto industry, including the 2023 insider trading scandal at Coinbase involving former manager Ishan Wahi.
