Binance Suspends Wallet Team Member Over Alleged Insider Trading

Binance, the largest centralized exchange (CEX) in the world, has suspended a Binance Wallet staff member following insider trading allegations, stating that the person in question used confidential information to gain unfair profits.

Binance has immediately suspended the staff member, “pending further disciplinary action,” and may also take legal action. Binance says it will proactively cooperate with authorities in the employee's jurisdiction.

The staff member’s specific trades have not been disclosed; however, depending on the trades taken, there were potentially massive profits to be gained, especially if the perpetrator had advance knowledge of spot listings.

Binance is no stranger to insider trading allegations, especially considering controversial memecoin listings such as NEIRO and ACT. The NEIRO token listing in September was potentially the most obvious opportunity for insiders to capitalize on. Binance chose to list a NEIRO token that was trading at a paltry $15 million market capitalization despite there being a different token that was valued at $125 million at the time.

As a result, the Binance-listed NEIRO rallied from $15 million on Sept 15 to $400 million just three days post-listing, and continued as high as $1.1 billion by November, creating a nearly 100x opportunity.

The audit team was alerted by four whistleblowers on March 23, who were each awarded $25,000 for alerting Binance’s official whistleblowing channel.