- Binance has suspended a staff member
- Binance states that the staff allegedly using confidential information from their previous role at BNB Chain to front run a token launch, according to a statement released Monday.
- The employee’s “misconduct” involved “front running trades using insider information” done to “gain improper profits,” Binance’s Internal Audit team stated on X.
Detailed Investigation by Binance
Based on its preliminary investigation, Binance said it found evidence that the employee allegedly purchased tokens through multiple wallet addresses before any public announcement was made for a Token Generation Event.
In the recent X posts on March 25, 2025 , they said “No insider trading related to our Wallet team: At the time of the alleged incident, the individual was working within the Binance Wallet team, which has no business relationship or collaboration with the project involved. Therefore, the Binance Wallet team should not have access to any non-public information relating to the project.
Suspected misuse of prior role information for personal gain: However, we found that the employee previously held a business development role at BNB Chain before joining the Wallet team one month ago. Leveraging information from his former position as well as his familiarity with on-chain projects, the employee was aware the project was planning a Token Generation Event (TGE) and anticipated it would generate significant community interest.
Prior to the project’s public token launch announcement, the staff member used multiple linked wallet addresses to purchase a large volume of the project’s tokens. Following the announcement, the staff member quickly sold part of his holdings to realize significant profits, while the remaining tokens retained considerable unrealized gains. This behavior constitutes front-running based on non-public information obtained from his previous role and is a clear breach of company policy.
Supension by the management
As per the their regulations, they said “Immediate Suspension: As a result of this behavior, the staff member was suspended immediately and pending further disciplinary action. Legal Action: We will proactively cooperate with the relevant authorities in the employee’s jurisdiction and take appropriate legal action in accordance with applicable laws. Any associated assets will be handled in full compliance with applicable laws and regulations”.
The company said it is committed to “proactively” cooperating with relevant authorities and pursuing “appropriate legal action.”
The exchange distributed a $100,000 reward equally among four whistleblowers who submitted reports through the company’s official channel.
Earlier in February, Binance co-founder Yi He offered up to $10,000 in bounties to employees who report colleagues involved in insider trading or leakage of sensitive business information.
The case bears similarities to Coinbase’s 2023 incident involving former manager Ishan Wahi, who admitted to sharing confidential token-listing information.
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