Binance suspends employee for using insider information to profit from token launch.

Investigation reveals the employee used multiple wallets to buy tokens before launch. Four whistleblowers received a $100,000 reward for reporting the misconduct. By Crystal.

Binance, the world's leading cryptocurrency exchange, has taken swift action to suspend an employee for alleged insider trading violations. According to an official tweet post by Binance on March 24, the employee is being investigated for using confidential information from their previous role at BNB Chain to purchase tokens before a planned Token Generation Event (TGE).

The allegations reached Binance on March 23, leading to an internal investigation. Findings revealed that the employee used multiple wallet addresses to buy tokens.

The post further adds that the internal audit team is committed to maintaining the highest standards of conduct and will continue to investigate any reported cases of misconduct.

Announcing huge reward for 4 whistleblowers who reported the case to Binance through its preferred channel, Binance adds that it is also working closely with relevant legal authorities to ensure that appropriate legal actions are taken.

Earlier this year, a former Coinbase manager was reportedly sentenced to four months in prison for disclosing to a friend information about upcoming cryptocurrency listings on the exchange, which the friend then used to make trades, reports Blockworks.

In December 2023, crypto exchange Binance announced a bounty program for employees who report insider trading or information leaks. According to the program, employees who provide information leading to the recovery of stolen user assets will receive a bounty of up to $10,000.