UPDATE 🚨: Binance confirmed that an employee used insider information to promote a newly issued token on their official account. The employee has been suspended, legal action is being taken, and a reward of $100K was granted to the whistleblower [5].
According to the internal investigation, the employee had used confidential information for personal gain, which constitutes a clear violation of company policies. Binance is cooperating with the authorities to take legal action and has reinforced its internal controls to prevent similar incidents in the future.
Incident details:
The employee had previously worked on the BNB Chain business development team and had recently joined the Binance Wallet team.
They used insider information about a token generation event (TGE) to buy tokens before their public launch and subsequently sold them for a profit.
The company has suspended the employee and is conducting an additional disciplinary review.
Measures taken by Binance:
Employee suspension: The employee has been suspended immediately.
Legal actions: Binance is cooperating with the authorities to take action.
Whistleblower reward: A reward of $100K was granted to the whistleblower who reported the incident.
Policy review: Binance is reviewing its policies and procedures to prevent similar incidents in the future
