- Ex Binance member used prior knowledge to buy tokens before TGE and sold for winnings.
- Binance interrupted the employee and conducts legal procedures.
- Binance allocated $ 100,000 to four people who reported the error.
Binance, a leading global Cryptocurrency exchange, has temporarily suspended an employee for alleged insider trading with non-public information. The case was about buying and selling an individual project tokens before its token generation event (TGE). Which has raised questions about openness and ethical trade practice in the sector.
Charges and investigation
IN Binance announcement At X, one of the employees from the Binance Wallet team used insider information to manage tokens and harvest huge profits. The employee concerned had worked in a business development capacity within the BNB chain before moving to the Binance Wallet team.
The exchange made it clear that the wallet team itself would not receive confidential information about token launches, which indicates the person who was abused knowledge gained in his previous role.
Binance initiated an internal investigation after receiving complaints to its internal audit department on March 23, 2025. Initial results indicate that the employee made a strategic purchase of a high volume of tokens before the announcement of the official TGE. Thereafter, some of the holdings were sold for large profits.
Discipline
Based on these results, Binance has taken the following measures:
- Suspension: The employee was canceled with immediate effect, subject to further disciplinary measures.
- Legal Action: Binance has confirmed that it will help the relevant authorities in the relevant jurisdiction of the employees and take appropriate legal action in accordance with applicable laws.
- Outline of all related assets will be implemented in full compliance with laws.
The whistle relocation
In its attempt to maintain openness and integrity, Binance issued a $ 100,000 win to four whistles that reported the case through the company’s official whistleblowing platform. The exchange made it clear that reports published online at X would not qualify for the reward. Furrther emphasizes the need to use official reporting channels.
- fo@gcom
- rD@gcom
- 7a@gcom
- 49@Q.com
Industry and community response
Although Binance has not come out to name the project in question in the alleged case of insider trading, several users on X Theoretized have theoretized that it is related to Binance Smart Chain Memecoin UUU (U Dex platform).
Binance official Chinese-language account thanked “feedback” and promised users that the results of the internal investigation would be made public. The exchange also confirmed its determination to strengthen internal controls to prevent the error from being repeated in the future.
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