Binance Suspends Employee Over Insider Trading Tied to Misleading Token Launch Post

Binance, the world’s largest cryptocurrency exchange, confirmed that it has suspended an employee following evidence of insider trading and deliberate misuse of privileged information. The individual allegedly leveraged advance knowledge of an upcoming token launch to publish misleading content through the exchange’s official futures trading account on X. The swift internal investigation uncovered behavior that the company described as a serious breach of trust and professional standards.

The incident unfolded in the early hours of December 7, 2025, when an undisclosed token was issued onchain at 12:29 a.m. Eastern Standard Time. Within sixty seconds, a post containing text and promotional images tied to that same token appeared on Binance Futures’ verified X account. Investigators determined the employee responsible had access to non-public details about the launch and used that information to craft and publish the tweet for apparent personal financial benefit.

Investigation Details and Company Response

Binance stressed that such conduct represents an unambiguous abuse of position and directly violates its internal policies and code of professional conduct. The employee was placed on immediate suspension while the exchange prepares additional disciplinary measures. Management also pledged full cooperation with law enforcement authorities in the individual’s jurisdiction and stated it will pursue legal remedies permitted under applicable laws.

This case marks the second notable insider incident at Binance this year. On March 23, 2025, a former employee used confidential sale timing information to purchase a token ahead of its public launch, later realizing approximately $113,000 in profit after quickly selling the position. That case prompted the exchange to strengthen monitoring procedures and expand its whistleblower reward program.

In this current matter, Binance reviewed all submissions received through its official whistleblowing portal, verified authenticity, and removed duplicate reports. The company will distribute a total reward of $100,000 evenly among the five earliest valid tipsters, with each recipient contacted privately by email. Public disclosures on X, while appreciated for raising awareness, do not qualify for compensation in order to safeguard whistleblower privacy and encourage use of secure channels.

Leadership reiterated a zero-tolerance stance toward misconduct of any kind. Officials promised ongoing enhancements to internal controls, policy updates, and preventive safeguards designed to eliminate future occurrences. Binance exchange thanked its global community for continued vigilance and support in upholding industry integrity.

The suspension and forthcoming legal steps underscore Binance’s efforts to maintain credibility amid persistent regulatory scrutiny of centralized platforms. By publicly addressing the violation and compensating those who reported it responsibly, the company aims to reinforce confidence in its operational standards and commitment to a fair trading environment.