- Binance began an internal probe on December 7 into an employee suspected of using insider information for personal benefit.
- The employee reportedly posted on the official Binance Futures social media account within a minute of a token issuance to gain an unfair advantage.
- The suspect was suspended, and authorities in the employee’s jurisdiction have been notified for possible legal action.
- Binance is rewarding whistleblowers who submit verified reports through its official channel as part of its governance efforts.
- Similar insider trading allegations involving Binance staff have surfaced previously, reflecting ongoing regulatory concerns in the crypto sector.
On December 7, Binance launched an internal investigation after suspecting an employee of misusing insider information. The employee allegedly posted on the official Binance Futures X account to capitalize on non-public details about a token that was issued onchain less than a minute earlier. This incident involved an abuse of privileged access to insider information for personal gain, according to a recent post from Binance.
Following the report, the employee was immediately suspended. Binance informed local authorities to pursue potential legal action against the individual in the relevant jurisdiction. Requests for further information on the token involved or the amount profited have not yet been answered.
The exchange is emphasizing whistleblowing as a crucial regulatory measure. It confirmed that the declared $100,000 reward will be shared among multiple users who submitted the earliest validated reports through its official audit@binance.com channel. Binance clarified that only submissions via this internal channel are eligible for bounties, even though some details emerged publicly on X. The exchange encourages ongoing vigilance and reporting of suspicious activity.
Binance maintains a zero-tolerance policy concerning employees exploiting their roles for private benefit. It pledged to improve internal controls and procedures to prevent similar misconduct. The incident highlights how whistleblowers can quickly detect and flag suspicious blockchain activity and social media posts, helping exchanges enforce rules through bounty programs.
This case echoes a previous March 2025 episode when Binance Wallet suspended a staff member accused of using insider knowledge about a token event to execute profitable front-running trades. The employee reportedly purchased significant amounts of the token via multiple linked wallets before its public announcement and sold parts at a profit once it launched.
Insider trading issues have also affected other crypto platforms. In 2022, U.S. authorities charged a former Coinbase product manager and associates for using confidential information on token listings to trade 25 assets ahead of announcements, generating over $1 million in illicit gains.
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