Cryptocurrency exchange giant Binance has taken decisive action following an insider trading scandal, suspending an employee and launching legal proceedings. The incident came to light after the company received a specific tip on December 7th regarding suspicious activities by a staff member.
An internal investigation confirmed the employee had abused their position by using confidential, internal information for personal financial gain. The probe revealed a specific sequence: the employee posted information from an official Binance account related to a particular token. This token had been issued on-chain at 5:29 a.m. UTC on the same day, just minutes before the official public announcement, constituting a blatant abuse of authority.
In response, Binance has implemented a multi-pronged approach: the employee was immediately suspended, the company is pursuing legal action, additional internal disciplinary procedures are underway, and it is cooperating with law enforcement in the employee's jurisdiction. Furthermore, Binance confirmed it awarded a $100,000 bounty to five verified reporters who contributed to uncovering the misconduct, reaffirming its zero-tolerance policy.
The exchange stated it remains focused on transparency and fair trading practices, and will strengthen its internal controls to prevent future incidents. It has also asked its community to report any future tips directly through official channels.
ETH
AVAX
BTC
XRP
DOGE
LINK