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Binance has addressed allegations of insider trading related to its recent listing of BOME. The claims, circulating on social media, suggested that an individual with prior knowledge of the listing profited by acquiring BOME tokens before the price surged.
Binance’s Response to Insider Trading Claims
In an official statement, Binance refuted the allegations, stating that the individual in question has no connection to the exchange. The exchange initiated an internal investigation and concluded that the person’s actions were unrelated to Binance.
According to the claims, the individual withdrew Solana worth $2.3 million from Binance just before the BOME listing and purchased BOME tokens with the proceeds. The price of BOME subsequently spiked from $0.0074 to $0.026.
Binance‘s statement reads:
“We have noticed discussions circulating for a few days regarding an incident labeled as ‘insider trading in BOME’ on Binance. We take this matter seriously and immediately launched an internal investigation based on certain data. According to our preliminary investigation results, the individual mentioned in the information has no connection to Binance. Thank you for your interest. We will continue to make such statements to ensure the truth is revealed in a transparent manner.”
Similar Allegations Surfaced for RONIN Listing
In February, Binance‘s listing of the RONIN token was also met with allegations of insider trading. The token’s price experienced a sharp decline shortly after the listing announcement, leading to suspicions about insider information being used to profit from the listing.
In response to the RONIN incident, Binance emphasized its commitment to conducting thorough due diligence before listings. The exchange also stated that it would be more cautious in the future and would not hesitate to adjust listing schedules or even postpone or cancel listings if necessary.
Binance further announced a program to reward individuals who provide information about insider trading activities. The rewards range from $100,000 to $5 million, and the identities of informants are protected.
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