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Binance suspended an employee after an internal investigation found he misused insider information to post misleading content about a token launch on the company’s official futures account.
Details of the Misconduct
Binance announced on Dec. 8 that it had suspended an employee accused of using insider information for personal financial gain. The suspension followed an investigation that determined the individual had used his position and knowledge of a certain launch to post misleading information on an official company social media account.
According to a statement released by the company via X, the misconduct involved a token issued onchain at 12:29 a.m. EST (5:29 UTC) on Dec. 7. Less than a minute later, the employee allegedly used the text and images related to that token in a tweet posted by the exchange’s futures account.
Binance stated that these actions constitute a clear abuse of position for personal gain and a violation of the company’s internal policies and code of professional conduct.
“These actions constitute abuse of their position for personal gain and violate our policies and code of professional conduct,” the company stated in a post regarding the preliminary findings.
The employee was suspended immediately, pending further disciplinary action. Binance emphasized its commitment to transparency and legal accountability.
“We have proactively contacted and will actively cooperate with the relevant authorities in the employee’s jurisdiction and take appropriate legal action in accordance with applicable laws,” the exchange noted.
$100,000 Reward for Valid Whistleblowers
Binance Wallet also took a similar instance in March after a former employee used privileged information to buy a token before its official sale launch. That former employee realized a profit of $113,000 shortly after offloading the token. Whistleblowers in that previous case were also rewarded.
Read more: Binance Wallet: Suspended Employee Profited From Privileged Information
Meanwhile, Binance said it verified and de-duplicated valid reports submitted via its official whistleblowing channel. A total reward of $100,000 will be equally distributed among the five earliest and valid whistleblowers, who will be contacted directly via email.
The company stated that while it appreciates reports shared publicly on the X platform, the reward applies only to those submitted through the official channel, a measure taken to protect the whistleblowers’ interests.
“We have zero tolerance for any misconduct. We will continue strengthening internal controls, refining our policies, and ensuring incidents like this do not recur,” Binance stated, thanking the community for its continued trust and support in maintaining a “transparent, healthy ecosystem.”
FAQ 💡
- What happened at Binance on Dec. 8? An employee was suspended for abusing insider information for personal gain.
- Which token was involved in the misconduct? The case centered on a token issued on-chain on Dec. 7.
- How is Binance responding to the incident? The company is cooperating with authorities and pursuing legal action under local laws.
- Are whistleblowers being rewarded? Yes, $100,000 will be shared among five verified whistleblowers via Binance’s official channel.