Binance Suspends Employee Over Front-Running Allegations
Binance has taken action against a staff member accused of misusing confidential information, though the exchange did not disclose the specific token involved in the allegations. The company also confirmed that no insider trading occurred.
In a statement posted Tuesday on X, the Binance Wallet team announced the suspension of an employee who allegedly leveraged knowledge from their previous role at BNB Chain to front-run a token launch.
The individual reportedly used multiple wallets to acquire tokens before a Token Generation Event (TGE), later selling a portion for quick profits.
“This conduct constitutes front-running based on non-public information obtained during their prior position, violating company policy,” the Wallet team stated.
Following an internal review, Binance determined that no current Wallet team members were involved in insider trading. The exchange clarified that the information used originated from the employee’s tenure at BNB Chain, rather than from their role within the Wallet team.
Binance also pledged to work with authorities to ensure appropriate legal action is taken.
The case bears similarities to Coinbase’s 2023 controversy, where former manager Ishan Wahi admitted to sharing token listing details with his brother and an associate. Coinbase later challenged the SEC’s allegations that the tokens involved in Wahi’s insider trading were securities.
