Binance Suspends Employee Amid Front-Running Probe

In a significant development, Binance has announced on Tuesday the suspension of a staff member from their wallet team who is accused of exploiting confidential information to profit from a token launch.

The allegations center on an individual who reportedly leveraged data from a prior role at BNB Chain to engage in front-running, a practice that involves buying assets ahead of a public event based on non-public knowledge. While Binance has not disclosed the specific token involved, the company emphasized that its internal investigation uncovered no evidence of insider trading tied to the wallet team itself.

According to Binance’s statement, the employee in question transitioned from a business development position at BNB Chain to the wallet team just a month ago. During their time at BNB Chain, they gained insights into an upcoming Token Generation Event (TGE), a process where new tokens are introduced to the market.

Anticipating heightened community interest, the staff member allegedly used multiple crypto wallet addresses to acquire substantial amounts of the tokens before the public announcement. Following the launch, they sold a portion of their holdings for quick gains, retaining the rest with significant unrealized profits. Binance labeled this behavior as a clear violation of company policy, underscoring that it stemmed from information accessed in the employee’s previous role rather than their current position.

Investigation and Next Steps

Binance moved swiftly to address the situation, launching an internal audit after receiving a complaint on March 23, 2025. The investigation concluded that the wallet team had no direct connection to the project in question, meaning the employee’s actions were not facilitated by their current role.

Nevertheless, the company suspended the individual immediately and pledged full cooperation with legal authorities in the staff member’s jurisdiction. Any assets linked to the trades will be managed in accordance with applicable laws, Binance assured its users. This response reflects the exchange’s broader commitment to maintaining integrity within its operations, a point reiterated in its public statement.

Beyond disciplinary measures, Binance highlighted its dedication to fostering a transparent ecosystem. The company praised the community’s vigilance and announced a $100,000 reward to be split among four whistleblowers who reported the misconduct through official channels.

While acknowledging similar reports shared on social media, Binance clarified that only submissions via its designated audit email address would qualify for rewards, a policy aimed at protecting whistleblowers and streamlining investigations. The exchange also encouraged users to continue submitting tips to uphold a fair trading environment, signaling an ongoing effort to strengthen internal controls and prevent future breaches.