Binance Suspends Employee Over Alleged Insider Trading Linked to BNB Chain

Binance has suspended a Wallet team staff member accused of front-running a token launch using confidential information from a previous role at BNB Chain. The employee allegedly bought tokens ahead of a Token Generation Event (TGE) using multiple wallets and later sold part of the holdings for profit, according to a post Tuesday on X (formerly Twitter).

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

An internal investigation found no evidence of insider trading within the current Wallet team. Binance clarified that the data used by the employee came from their former position at BNB Chain, not from their time on the Wallet team.

The incident has drawn parallels to a high-profile case at Coinbase in 2023, when former product manager Ishan Wahi was charged with leaking confidential token-listing details to his brother and a friend. That case led to legal challenges over whether certain tokens qualified as securities, drawing scrutiny from the U.S. Securities and Exchange Commission (SEC).

Binance emphasized its commitment to transparency and legal compliance, stating it will cooperate fully with authorities in any potential legal proceedings.

This event raises fresh concerns over insider trading in crypto markets, especially among employees with privileged access to upcoming token launches. Binance’s swift response underlines the growing pressure on major exchanges to enforce strict internal policies and prevent misuse of sensitive information.

As the industry continues to mature, ensuring trust through transparency and accountability remains key for leading platforms like Binance.