Binance Wallet fired its employee for insider trading

What’s new? The team of Binance Wallet from the largest crypto exchange Binance has published the results of an internal investigation in connection with a complaint about an employee's work. Thus, on March 23, the internal audit team was informed that an employee was engaged in front-running using insider information to make improper profits.

Source: X.com

What else is known? The complaint was about one of the new blockchain projects, whose name has not been released. Prior to the announcement of this project’s native token launch, an employee purchased a large volume of coins and distributed them to multiple addresses, and after the announcement, quickly sold some of the assets to make a significant profit, while the remaining tokens retained significant unrealized profits.

This behavior constitutes front-running based on non-public information from his previous post and is a clear violation of company policy, Binance auditors noted.

They claim that at the time of the incident, the employee was already working on the Binance Wallet team, which has no business relationship or collaboration with the project. Binance Wallet noted that the employee previously worked in the business development department of BNB Chain’s blockchain team, and had only taken a job at Binance Wallet a month ago.

Using information from a previous position, as well as knowledge of projects on the BNB Chain, the employee realized that one such project was planning a token generation event (TGE) that could generate significant interest in the crypto community.

As a result of the investigation, the employee was immediately suspended and is awaiting further disciplinary action. The team will actively cooperate with the relevant authorities in the employee’s jurisdiction and will prepare a lawsuit.

“We have zero tolerance for any misconduct. We will continue strengthening internal controls, refining our policies, and ensuring incidents like this do not recur.We welcome continued community oversight and encourage anyone with valid information to report via our official channel ([email protected]). Together, we can uphold a transparent, healthy blockchain ecosystem and build a safer, more trustworthy trading environment for all users,” Binance Wallet said, specifying that this time the total reward of $100 000 will be divided equally among the four whistleblowers.

The company emphasized that in order to receive whistleblower rewards, reports should only be sent to the official email. Those who wrote about the incident on X and other social networks will not be eligible for the reward.