TechFlow News, on March 25th, according to an official Binance announcement, Binance's internal audit team received a report on March 23rd, 2025, accusing an employee of using insider information for "front-running" to obtain improper gains. Binance takes this allegation seriously and immediately launched a comprehensive internal investigation. The preliminary investigation has been completed with the following results:
1. Investigation Summary
Insider trading unrelated to Binance Wallet team: The employee involved was part of the Binance Wallet team, which had no business relationship or collaboration with the relevant project, and therefore did not have access to any non-public information.
Suspected profit from previous position information: The investigation found that the employee was transferred from a business development position at BNB Chain to the Wallet team one month ago. In the previous position, the employee was familiar with chain projects and knew about a project's planned token generation event (TGE), which was expected to generate widespread community attention. Before the project publicly announced the token issuance, the employee purchased a large number of tokens through multiple associated wallet addresses and quickly sold part of the holdings for profit after the announcement, while still holding significant unrealized gains on the remaining tokens. This behavior was deemed as front-running using non-public information, clearly violating company policy.
2. Disciplinary Actions
Immediate Suspension: The employee has been immediately suspended and will face further disciplinary actions.
Legal Actions: Binance will actively cooperate with relevant departments in the employee's jurisdiction and take appropriate legal actions according to applicable laws. Any related assets will be handled in full compliance with legal regulations.
3. Reporting Reward
To thank the reporters for their contribution, Binance has completed verification and deduplication of reports and will distribute the promised $100,000 reward equally among the following reporters:
fo@g.com
rd@g.com
7a@g.com
49@q.com
Additionally, Binance notes that some reporting information was shared publicly on the X platform. While appreciating this, the reward is only applicable to valid reports submitted through official channels (audit@binance.com) to protect the reporters' interests.
