TechFlow reports, on March 25, according to an official announcement from Binance, the exchange's internal audit team received a tip on March 23, 2025, alleging that an employee had engaged in front-running trading using non-public information to obtain improper gains. Binance took the allegation seriously and immediately launched a comprehensive internal investigation. The preliminary investigation has now concluded, with the following results:
1. Investigation Summary
No insider trading related to the Binance Wallet team: The employee involved was part of the Binance Wallet team at the time, which has no business relationship or collaboration with the relevant project and therefore does not have access to any non-public information.
Suspected misuse of prior-position knowledge for profit: The investigation found that the employee had transferred from a business development role at BNB Chain to the Wallet team one month earlier. In their previous role, they were familiar with blockchain projects and knew that a particular project planned a token generation event (TGE), which was expected to attract significant community attention. Before the project publicly announced its token issuance, the employee purchased large amounts of the token through multiple linked wallet addresses and quickly sold part of the holdings for profit after the announcement, while still maintaining substantial unrealized gains on the remaining tokens. This behavior is deemed as front-running using non-public information and clearly violates company policy.
2. Disciplinary Actions
Immediate suspension: The employee has been immediately suspended and will face further disciplinary measures.
Legal action: Binance will actively cooperate with relevant authorities in the employee’s jurisdiction and take appropriate legal actions in accordance with applicable laws. All related assets will be handled strictly in compliance with legal requirements.
3. Whistleblower Reward
In appreciation of the whistleblowers’ contributions, Binance has completed verification and deduplication processes and will distribute the promised $100,000 reward equally among the following individuals:
fo@g.com
rd@g.com
7a@g.com
49@q.com
Additionally, Binance noted that some tips were publicly shared on the X platform. While the company appreciates such efforts, rewards are only granted for valid submissions made through official channels (audit@binance.com) to protect the interests of whistleblowers.
