Binance has taken disciplinary action against an employee after an internal investigation revealed that the staff member allegedly misused insider information to create a post on the official Binance Futures account for personal gain.
On Monday, Binance disclosed the commencement of an internal probe that started on Sunday, suspecting an employee of taking advantage of privileged information. They reported that the audit team received a complaint about the employee posting on the Binance Futures X account just moments after a token was issued on-chain.
Following the discovery, the employee was immediately suspended, and Binance contacted relevant authorities to explore potential legal actions.
Cointelegraph reached out to inquire about the specific cryptocurrency involved and any profits made but did not receive a response before publication.
Binance Encourages Whistleblowers
The exchange is reinforcing its commitment to whistleblower reports, confirming that it will share a promised $100,000 reward among users who submit valid tips through their official channel, after verification.
It emphasized that only reports submitted through this designated internal channel would qualify for rewards, despite some information being shared publicly. Binance urged its community to continue reporting any suspicious activities.
The platform maintains a strict zero tolerance policy against employees exploiting their roles for personal profit, vowing to enhance internal controls to prevent misconduct.
This incident emphasizes the crucial role of whistleblowers in identifying potentially fraudulent activity swiftly, and how exchanges can benefit from structured reward programs.
A Familiar Scenario for Binance
This is not the first instance involving a Binance employee accused of misusing their position. Earlier in March, Binance Wallet suspended a staff member after whistleblowers suggested the employee took advantage of insider knowledge regarding a forthcoming token generation event to conduct trades ahead of the public release.
In a broader context, Binance is not the only cryptocurrency exchange dealing with allegations of insider trading, as demonstrated by recent actions taken by US authorities against a former Coinbase product manager accused of profiting from confidential information.
