Binance Wallet Suspends Employee Amid Front-Running Allegations

Binance did not disclose the token involved in the allegations but stated that no insider trading had occurred.

Key Takeaways:

• Binance Wallet has suspended an employee accused of leveraging confidential information from their previous role at BNB Chain to front-run a token launch.

• The staff member allegedly purchased large amounts of tokens before a Token Generation Event (TGE) and later sold part of them for quick profits.

• Binance’s internal investigation found no evidence of insider trading but confirmed it would cooperate with authorities for potential legal action.

The Binance Wallet team announced on Tuesday via X that it has suspended a staff member accused of using confidential information from their previous role at BNB Chain to front-run a token launch.

The employee allegedly acquired tokens through multiple wallets ahead of a Token Generation Event (TGE) and later sold part of the holdings for quick profits.

“This behavior constitutes front-running based on non-public information obtained from the employee’s previous role and is a clear breach of company policy,” the Binance Wallet team stated.

Binance’s investigation found no evidence that Wallet team employees were involved in insider trading. The company clarified that the information used was acquired during the individual's tenure at BNB Chain, not while working with the Wallet team.

Binance stated that it will cooperate with relevant authorities to pursue appropriate legal action.

The suspension of this Wallet employee mirrors Coinbase’s 2023 scandal, where former manager Ishan Wahi admitted to leaking token-listing details to his brother and another associate.

Coinbase later became involved in the case to challenge the SEC’s classification of the tokens Wahi traded, arguing that they were not securities.