Binance Wallet Employee Suspended Over Alleged Front-Running
Binance has taken action against a staff member accused of front-running a token launch, though the exchange did not disclose which token was involved. The company also confirmed that no insider trading was found during its investigation.
In a statement shared on X, the Binance Wallet team announced that the employee allegedly leveraged confidential information from a previous role at BNB Chain to buy tokens ahead of a Token Generation Event (TGE). The individual reportedly used multiple wallets to acquire the tokens before selling a portion for profit.
“This constitutes front-running based on non-public information obtained from their prior position and is a direct violation of company policy,” the Wallet team stated.
Binance’s internal investigation found no evidence of insider trading among other Wallet team employees. The exchange clarified that the information used came from the employee’s past work at BNB Chain rather than their current position.
The company also stated that it will fully cooperate with authorities to pursue any necessary legal action.
This incident echoes Coinbase’s 2023 controversy involving former product manager Ishan Wahi, who admitted to leaking token listing details to his brother and an associate. Coinbase later pushed back against the SEC’s allegations that the tokens involved in the case were securities.
