Binance, the world’s largest cryptocurrency exchange, has taken strict action against one of its employees for alleged trade violations. According to an official tweet post from Binance, the employee used confidential information from their earlier role at BNB chain to buy tokens before a public announcement. Shortly after the launch, they sold part of the tokens and achieved considerable profit.
Binance employee bound to trade with prior knowledge
The allegations arose when Binance received complaints on March 23, which led to an internal investigation. The findings showed that the employee had used multiple wallet addresses to buy tokens before an official tokentameration event (TGE) was announced.
As soon as the project had become public, the employee sold part of his participations and retain the rest for possible future profit.
Although Binance did not announce the name of the employee, it confirmed that they were immediately suspended. The stock market also stated that it cooperates with legal authorities to ensure that the necessary actions are taken.
As part of his efforts to maintain integrity, Binance rewarded four whistleblowers with $ 100,000 for reporting the misconduct via his official channel.
Probable wallet linked to $ 200k in winnings
In a separate tweet post, Wu blockchain reported That a suspected Binance employee, reportedly linked to a wallet under the name Freddie NG, has made a profit of $ 113,000 by trading UUU tokens on Binance Smart Chain (BSC).
The wallet, which initially spent $ 6,227 to buy 24.1 million UUU tokens, later sold 6.02 million tokens, which generated considerable return. The remaining 18.09 million tokens, with a value of around $ 200,000, are still divided over nine different wallets.
Binance’s strict action against misconduct
Binance has ensured that his dedication to maintain transparency and fairness in crypto -trade. The company noted that it will fully collaborate with the authorities and take legal measures against those who have been found guilty of prior knowledge trade.
This is not the first time that a big exchange has had such a problem. Last year, one Former Coinbase -Manager Admittedly, to leak confidential token-listing information for personal gain.
Binance, however, remains proactive and offers premes of up to $ 10,000 to employees who are troubled in prior knowledge or information within the company.