Binance Suspends Employee Who Allegedly Used Insider Information to Promote Newly Issued Token

Binance has suspended an employee who allegedly used one of the exchange’s social media accounts to promote a token.

The top global crypto exchange says a preliminary investigation concluded that the employee had connections to a token that was issued on Sunday.

Less than a minute after the asset was issued, the employee allegedly posted about it on the Binance Futures’ X account.

Binance says it immediately suspended the employee and contacted legal authorities in the employee’s jurisdiction.

“These actions constitute abuse of their position for personal gain and violate our policies and code of professional conduct.”

The exchange notes it will “take appropriate legal action in accordance with applicable laws.”

The crypto firm also says that it will distribute a $100,000 reward among five whistleblowers who reported the alleged misconduct via the exchange’s official whistleblowing channel.

Binance dealt with a similar incident in March, when the firm suspended an employee who allegedly committed insider trading when working in a development role on its BNB Chain, prior to joining the Binance Wallet team.

The employee allegedly leveraged private information and purchased tokens associated with a project that was planning a token generation event. After the token generation event was announced, the employee allegedly sold a portion of the assets for a profit.

That investigation also triggered a $100,000 whistleblower reward, which was split among four people.

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