It claimed the staffer “used multiple linked wallet addresses to purchase a large volume of the project’s tokens” before it publicly announced the token launch and then, after the announcement, “quickly sold part of his holdings to realize significant profits.”Binance Wallet accused the staff member of front-running trades based on non-public information gained from a previous role in breach of company policy. It added the staff member was “suspended immediately and pending further disciplinary action,” and the company would cooperate with authorities in the relevant jurisdiction to take legal action.
It claimed a preliminary investigation found a Binance Wallet staffer who joined the team last month was suspected of using information from a former position in a business development role at BNB Chain to “front-run” trades of a project token. “The employee was aware the project was planning a Token Generation Event (TGE) and anticipated it would generate significant community interest,” Binance Wallet wrote.
The exchange’s crypto wallet business, Binance Wallet, launched an investigation on March 23 after it “received a complaint alleging that one of our staff members engaged in front-running trades using insider information to gain improper profits,” it said in a March 25 X post.
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Author / Journalist: Cointelegraph by Jesse Coghlan
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