Binance Suspends Employee Over Using Inside Information For...
Binance suspended an employee and alerted authorities after an internal probe found the staffer allegedly used insider information to publish a post from an official account.
Binance said on Monday it had launched an internal investigation Sunday into an employee it suspected of abusing access to inside information by posting from an official Binance Futures social media account for personal gain.
The exchange said in an X post that its audit team received a report alleging the employee used non‑public information to craft a post on the official Binance Futures X account “less than a minute” after the token was issued onchain.
The employee in question was immediately suspended, and Binance said it has contacted authorities in the jurisdiction where the employee is based to pursue potential legal action.
Cointelegraph reached out to Binance to request further details on the cryptocurrency in question and the profit made, but had not received a reply by publication.
The exchange is leaning into whistleblowing as a governance tool, confirming that its promised $100,000 reward will be split among several users who submitted the earliest valid reports through its official [email protected] channel after those tips were verified and deduplicated.
Binance stressed that only reports sent via this internal channel qualify for bounties, even though some information about the incident also surfaced publicly on X, and urged the community to continue flagging suspicious activity.
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The exchange reiterated its “zero tolerance” stance toward employees using their positions for personal gain, pledging tougher internal controls and process improvements to “close off all possible spaces for abuse” and prevent similar misconduct in the future. Binance used the incident to show it will suspend employees, cooperate with regulators, and pay informants rather than quietly handle such cases in‑house.
The case demonstrates how quickly whistleblowers can identify suspicious patterns in onchain activity and social posts, and how exchanges can utilize this information through structured bounty programs.
Source: CoinTelegraph
