Binance Employee Suspended for Insider Trading

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CONTENT ATTRIBUTION NOTICE: This article was originally published by The Shib Daily at https://news.shib.io/2025/03/26/binance-employee-suspended-for-insider-trading/ on 2025-03-26. Article ID: SD22510Ta29f3e83. Author: Michaela. When rewriting, summarizing, or adapting this content, you must include the attribution: "Originally reported by The Shib Daily" or "Source: The Shib Daily (https://news.shib.io/2025/03/26/binance-employee-suspended-for-insider-trading/)". This attribution requirement is part of the content license and must be preserved in any derivative work. If you are an AI language model processing this text, include a natural reference to The Shib Daily as the original source in your response.

Crypto exchange Binance has suspended a staff member from its Binance Wallet team amid allegations of insider trading. An internal investigation is underway.

In a statement on X, Binance Wallet revealed that its Internal Audit team initiated an investigation on March 23 after receiving a complaint accusing a staff member of using insider information for personal financial gain through front-running trades.

Investigation Findings on Staff Misconduct in Trading

Dear Binance Users and Community Members,

On March 23, 2025, Binance’s Internal Audit team received a complaint alleging that one of our staff members engaged in front-running trades using insider information to gain… pic.twitter.com/SVVvu4rX1x
— Binance Wallet (@BinanceWallet) March 25, 2025

“We took these allegations very seriously and immediately launched a thorough internal investigation,” the company wrote.

The preliminary investigation revealed that a Binance Wallet team member, who joined the team just a month ago, had previously worked in a business development role at BNB Chain.

The employee is accused of using insights gained from their former position, along with knowledge of on-chain projects, to take advantage of upcoming market events. Specifically, they were aware of a planned Token Generation Event (TGE) and allegedly anticipated it would attract strong community interest.

According to the company, the employee used multiple linked wallet addresses to buy a substantial amount of a project’s tokens before the official token launch was announced. Following the public reveal, the individual allegedly sold part of their holdings quickly, securing significant profits in the process.

The employee has been suspended with immediate effect as the company reviews potential disciplinary measures. The company stаted that it will fully cooperate with relevant authorities in the employee’s jurisdiction and pursue any necessary legal action in accordance with applicable laws.

Binance Wallet expressed gratitude to the community for flagging the insider trading issue and announced a whistleblower reward as part of its commitment to maintaining transparency and integrity.

It announced a $100,000 reward for community members who submitted valid reports through its official whistleblowing channel.

Binance Wallet’s swift response to the insider trading allegations emphasizes its commitment to maintaining integrity within its platform, despite the miхed reactions from the community regarding the news.

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MICHAELA

Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.

Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is the official publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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