- Binance suspended an employee for using insider information to profit from a token launch.
- The staff member allegedly front-ran trades using knowledge from a prior role at BNB Chain.
- Binance rewarded whistleblowers with $100,000 and pledged stricter internal controls for fairness.
A Binance employee has been suspended after an internal investigation found misconduct involving insider trading. The company received a complaint on March 23, 2025, alleging that the staff member used non-public information to profit from token trades. Binance quickly launched an investigation and shared its findings with the public.
The employee worked within the Binance Wallet team. However, they previously held a business development role at BNB Chain. The company stated that while the Wallet team had no connection to the project in question, the employee used knowledge from their prior position. They allegedly bought large amounts of tokens before the project’s official announcement and then sold part of their holdings for significant profits.
The investigation found that the employee used multiple linked wallet addresses to execute these trades. Binance described these transactions as front-running activities because employees used proprietary information to execute trades before the information became publicly accessible. The company stated that this violated its policies and that immediate action was taken against the staff member.
Binance suspended the employee and announced that further disciplinary measures are under review. The company also plans to cooperate with legal authorities in the employee’s jurisdiction. Any assets linked to the misconduct will be handled according to the relevant laws.
Related: Australian AFP Investigates Massive Binance Crypto Scam
Binance showcased its commitment to conducting business in a transparent and fair manner. The company declared that it operates without accepting insider trading among users. To strengthen oversight, Binance is refining its internal controls and policies to prevent similar incidents in the future.
As part of its response, Binance rewarded individuals who helped expose the misconduct. The company validated whistleblower reports while distributing $100,000 in compensation to them. The funds were distributed among four whistleblowers who filed reports through Binance’s official reporting channels. Binance declared that it only paid rewards to those who filed reports by using its official email system.
The company also addressed reports shared publicly on social media. While Binance appreciated the efforts, it urged users to report concerns through official channels to protect whistleblowers’ security and privacy. Binance encouraged the community to continue monitoring activity and report any suspicious behavior. It assured users, that it would remain vigilant and take swift action against any misconduct.
