Binance has suspended an employee after an internal investigation into claims of front-running trades based on insider information. On March 23, 2025, the company got a complaint saying the person used secret info for their own gain. After that, Binance quickly started looking into it and found out the employee had indeed used private details from their old job at BNB Chain in a way they shouldn’t have.
The employee, who had recently joined the Binance Wallet team, had earlier worked in business development at BNB Chain. While in that position, they became aware of non-public information about an upcoming Token Generation Event (TGE). Before the project’s public announcement, they allegedly purchased a significant number of tokens using multiple linked wallet addresses.
After the news was confirmed, they quickly sold some of their shares, locking in big profits while keeping tokens that could still gain value later.
Binance made it clear that the Wallet team wasn’t linked to the project and shouldn’t have known such private details. Nevertheless, the company regarded the employee’s behavior as a major violation of its internal rules. Binance stressed that using confidential information from a previous position for personal profit was intolerable and went against its ethical principles.
Consequently, the company took prompt action by suspending the employee and is now weighing additional disciplinary measures. Binance has promised to cooperate fully with law enforcement in the region where the employee is based and to take any necessary legal steps to ensure the law is upheld.
The exchange emphasized its firm stance against any form of misconduct, particularly when it involves unethical trading practices.
To increase transparency and encourage individuals to report issues, Binance allocated $100,000 to four whistleblowers who used its official audit channel. While some details appeared on X (formerly Twitter), Binance specified that only submissions through its designated whistleblower channel qualified for the reward, maintaining confidentiality and rigorous verification.
Binance reaffirmed its dedication to maintaining integrity and stated that it will keep refining its internal policies and processes to avoid similar situations moving forward. The company urged its users and staff to flag any questionable activities through official channels to support a fair and open trading environment.
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