Insider Trading Allegations and Legal Proceedings
Binance, the world's largest cryptocurrency exchange, has released a statement detailing its response to an employee involved in insider trading. Binance Futures announced that it has initiated legal action against the employee for leveraging internal company information for personal gain.
The exchange stated that it will sue an employee who exploited the price increase of a listed altcoin for personal benefit. According to a statement released on the Binance Futures X account, an altcoin was shared on the Binance Futures account one minute after it was mined on the chain on December 7.
It was reported that the employee in question misused certain information obtained from insiders and disseminated it from their “Binance Futures” account. Following this activity, Binance received a tip concerning the employee's actions on December 7.
Investigation and Company Response
The exchange confirmed through its investigation that the employee transmitted information regarding a specific token, which was issued on-chain, to an official account at 05:29 UTC on that day. Binance characterized this action as a clear abuse of power and a violation of its internal company regulations and ethics rules.
In addition to suspending the employee, Binance has initiated legal proceedings. The exchange has pledged to enhance its internal controls to prevent similar incidents from occurring in the future. Binance also expressed its appreciation for community moderation and requested that any future reports be submitted through official email channels.
Rewards for Whistleblowers
Binance recently disclosed that five individuals who reported the incident to Binance via the official complaint email received a collective reward of $100,000.