Binance stops workers via insider trading tied to token generation events

According to a Monday announcement from Binance Wallet’s X account, Binance has suspended employees after an internal investigation revealed that an individual engaged in insider trading linked to the Token Generation Event (TGE).

According to Binance, an employee who was recently transferred from the BNB chain’s business development role to Binance’s wallet team reportedly used multiple wallet addresses to purchase the tokens prior to the public announcement.

After the project publicly disclosed the TGE, employees sold some of their holdings and maintained additional tokens with substantial unrealized profits while securing substantial profits.

“Employees who are familiar with on-chain projects, using information from their previous positions, were aware that the project was planning a Token Generation Event (TGE), and expected a greater community interest,” Binance said.

The exchange’s internal audit team began an investigation on March 23 after receiving complaints about suspected front-running.

The survey found that individuals used confidential knowledge gained from previous positions.

Binance said it will work with relevant authorities to pursue legal action against its employees. The exchange distributes an equal $100,000 reward among the four whistleblowers who report the incident through official channels.

“At Binance, we maintain user-first principles, we strive to be transparent, fair and integrity. We have zero tolerance for fraud,” the exchange said.

The company has also encouraged community members to report future concerns via official audit emails, and has committed to maintaining a safe and reliable trading ecosystem.