Binance (BNB), the world’s largest cryptocurrency exchange, has initiated an investigation following allegations of insider trading involving one of its employees.
Binance Uncovers Alleged Misuse Of Insider Information
On December 7, Binance’s internal audit team received a report claiming that an employee had exploited insider information to make posts on official social media, thereby gaining personal profits.
In a recent communication shared on the social media platform X (previously known as Twitter), Binance outlined the immediate steps taken in response to these allegations.
The preliminary findings of the investigation revealed that the employee in question had connections to a token that was issued on-chain on December 7. Less than a minute later, they allegedly used details, including text and images relating to this token, in a tweet published by the Binance Futures account. The exchange noted:
These actions constitute abuse of their position for personal gain and violate our policies and code of professional conduct.
Whistleblower Bounty Of $100,000 Announced
In light of these findings, the employee whose name was not disclosed in the information provided by the exchange has been suspended immediately pending further disciplinary action.
Furthermore, Binance has communicated its intent to engage with relevant authorities in the employee’s jurisdiction, pledging full cooperation and pursuing appropriate legal action in line with applicable laws.
While emphasizing its commitment to transparency, fairness, and user welfare, the exchange has also announced a total bounty reward of $100,000, which will be equally distributed among the earliest valid whistleblowers.
The exchange’s native token, Binance Coin (BNB), is trading at $896.50 when writing. This means BNB is down over 34% from the all-time high of $1,369 reached earlier this year.
Featured image from DALL-E, chart from TradingView.com
