Binance, a leading player in the cryptocurrency exchange landscape, has embarked on a significant inquiry following serious claims of insider trading by one of its staff members.
Allegations of Insider Trading Prompt Binance Investigation
On December 7, Binance’s internal compliance unit received alarming information indicating that an employee might have misused privileged information to make unauthorized posts on official company channels, thus securing personal financial benefits.
In a recent update shared via the social media platform X (formerly Twitter), Binance meticulously detailed the steps taken in light of these grave accusations.
The initial stages of the inquiry showed that the implicated employee had ties to a cryptocurrency token that was launched on-chain on the same day. Reports claim that within moments, the individual used sensitive information related to this token in a tweet from the Binance Futures account. The exchange stated:
Such behavior clearly violates our internal policies and exploits their role for personal enrichment.
Whistleblower Incentive: $100,000 Reward Offered
Following these developments, the specific employee has been suspended immediately while awaiting further disciplinary review. Their identity remains confidential as the investigation unfolds.
Moreover, Binance is poised to collaborate with appropriate authorities within the employee’s jurisdiction, assuring thorough cooperation and pursuing suitable legal measures in accordance with the law. They strive to uphold principles of transparency and equity.
To further encourage reports of wrongdoing, Binance has announced a substantial whistleblower reward totaling $100,000, which will be distributed among those who bring forth valid claims early in this process.
At the time of writing, the value of Binance Coin (BNB) sits at $896.50, signifying a considerable drop exceeding 34% from its record peak of $1,369 established earlier this year.
Image courtesy of DALL-E; chart powered by TradingView.com
