The world's largest cryptocurrency exchange, Binance, has reported that an internal employee is suspected of using their former position to front-run tokens that were about to be listed and quickly sold for profits after trading opened. According to the official announcement, Binance has immediately suspended the employee suspected of 'front-running arbitrage' and will cooperate with relevant law enforcement agencies to take legal action.

The Binance Wallet Team stated today (25) that the internal audit team received a report on March 23, alleging that an employee was suspected of using insider information for 'front-running trades' to gain improper benefits.

Investigation Findings on Staff Misconduct in Trading

Dear Binance Users and Community Members,

On March 23, 2025, Binance’s Internal Audit team received a complaint alleging that one of our staff members engaged in front-running trades using insider information to gain… pic.twitter.com/SVVvu4rX1x

— Binance Wallet (@BinanceWallet) March 25, 2025

The post indicated that this employee originally held a business development position at BNB Chain and was only transferred to the Binance Wallet team a month ago.

An internal investigation confirmed that the employee obtained confidential information through their previous position and learned about a project that was about to conduct a TGE event. Driven by greed, they used multiple wallets to buy a large amount of tokens before they were issued and sold part of their holdings after the news broke, obtaining considerable profits, while the remaining tokens also retained significant unrealized gains.

The internal investigation results also mentioned, 'The Binance Wallet Team was not involved in insider trading.'

In response, Binance explained that although the employee involved was part of the wallet team at the time of the incident, the team had no business dealings or cooperation with the project party, so theoretically, it was impossible to have any non-public information related to the project, let alone use confidential information for insider trading.

Binance stated: "This behavior constitutes front-running trades using non-public information obtained from past positions, which is a serious violation of company regulations."

However, Binance did not disclose the name of the token involved in this case, nor did it specify the amount of profit made by the employee.

Currently, this employee has been suspended, and Binance stated that it will actively cooperate with the law enforcement agencies in the jurisdiction of the employee to pursue legal responsibilities, and the assets involved will be handled according to relevant regulations. At the same time, Binance also rewarded 4 whistleblowers with a total of $100,000.

"Tokens ambushed before listing, sold immediately after opening! Binance employee 'front-running arbitrage' suspended and prosecuted" was first published in (Block Voice).