Binance Wallet Employee Suspended Over Front-Running Allegations

Binance has suspended 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 posted on X, the Binance Wallet team revealed that the employee allegedly used confidential information from their previous role at BNB Chain to purchase tokens across multiple wallets before a Token Generation Event (TGE). The individual then reportedly sold part of their holdings for a quick profit.

“This conduct constitutes front-running based on non-public information obtained from their prior role, which is a direct violation of company policy,” the Wallet team stated.

Binance clarified that its internal investigation found no wrongdoing among other Wallet team employees. The company emphasized that the information used was acquired while the individual worked at BNB Chain, not during their time with the Wallet team.

The exchange also confirmed that it will cooperate with authorities to ensure appropriate legal action is taken.

The case draws parallels to Coinbase’s 2023 insider trading scandal, where former product manager Ishan Wahi admitted to leaking token listing details to his brother and an associate. Coinbase later challenged the SEC’s claims that the traded tokens were securities.