Binance Suspends Employee After Token Post Misconduct Claim
- Binance probes alleged insider info misuse tied to an official token post dated Dec 7, 2025.
- Investigators link a 05:29 UTC on-chain token to a Binance Futures tweet within one minute.
- The firm suspended the employee, contacted authorities, and set a $100K whistleblower reward.
Binance said it opened an internal investigation after a report alleged an employee misused insider information. The exchange released preliminary findings dated December 7, 2025. The case focused on token-related material posted through an official account. Company officials said the conduct sought personal gain. Immediate steps included suspension and contact with authorities. Further disciplinary action remains under review.
A report reached the internal audit department on December 7, Binance said. Allegations claimed a staff member used non-public details. Use of official social media was also cited. A formal review began immediately, the company added.
On-Chain Token Linked to Futures Post as Employee Faces Suspension
Investigators said the employee was linked to a token issued on-chain at 05:29 UTC on December 7. Less than a minute later, text and images tied to that token appeared in a tweet. The post came from the Binance Futures account, the firm said. Those actions were described as an abuse of position.
Company policy and the code of professional conduct were cited as being breached. Improper personal gain was cited as the motive in the preliminary account. The company did not name the employee. Specific profit figures were not included.
Suspension was imposed at once, the company said. Additional disciplinary measures are pending. Legal consequences were also raised in the update. Authorities in the employee’s jurisdiction were contacted, according to Binance.
Active cooperation with authorities was promised. Appropriate legal action under applicable laws was also mentioned. The jurisdiction was not identified. Agencies involved were not listed.
The statement emphasized a user-first principle. Commitments to transparency, fairness, and integrity were reiterated. Zero tolerance for misconduct was stated, along with the strengthening of internal controls.
Policy refinements were also promised. Steps to prevent similar incidents were described as ongoing work. Community oversight was welcomed in the update. Submission of valid information was encouraged through official reporting channels.
Verification and de-duplication of valid submissions were said to be complete. The company said the USD 100,000 reward will be shared equally among the five earliest valid whistleblowers, who will be contacted directly by email.
Future leads were requested through official channels only. A controlled process for review and validation was implied. A payment date for the reward was not shared. Details on how eligibility was assessed were not provided.
Related: Binance CEO Says Bitcoin Drop Reflects Broader “Risk-Off” Trend
March 2025 Case Cited as Binance Flags Prior Front-Running Suspension
An earlier case from March 2025 was cited as context. A staff member was suspended in that matter as well, Binance said. Confidential information from a previous role at BNB Chain was referenced. Front-running was described as the central allegation.
Misconduct was described as front-running trades using insider information. Improper profits were cited as the goal. Complaints were said to have arrived on March 23. The employee was not named in that statement.
Preliminary findings in the March case cited token purchases through multiple wallet addresses. Those buys allegedly occurred before any public announcement tied to a Token Generation Event. Front-running based on non-public information was alleged. A clear breach of company policy was asserted.
A definition of front-running was included by the company. Trading based on non-public information about upcoming market events was the explanation given. Such events were said to be likely to move prices. Additional technical detail was not provided.
The company said it aims to uphold a transparent and healthy ecosystem. A safer trading environment for users was presented as the goal. Ongoing control improvements were positioned as part of that effort.
