The Binance Wallet team said Tuesday in a post on X that it has suspended a staff member accused of using confidential information from their previous roles at BNB Chain to front-run a token launch.
The employee allegedly purchased coins via multiple wallets ahead of a Token Generation Event (TGE), later selling part of the holdings for quick profits.
STORY CONTINUES BELOW
“This behavior constitutes front-running based on non-public information obtained from his previous role and is a clear breach of company policy,” a statement from the Wallet team reads.
Binance’s investigation found no evidence that the Wallet team employees were involved in insider trading. The company said the information they used was based on data obtained while they were at BNB Chain, not on the Wallet team.
Binance said it will cooperate with relevant authorities to pursue appropriate legal action.
Binance’s suspension of this Wallet employee echoes Coinbase’s 2023 scandal involving former manager Ishan Wahi, who admitted leaking token-listing details with his brother and another contact.
Coinbase eventually got involved in the case to contest Securities and Exchange Commission charges that the tokens Wahi inside-traded on were securities.