Binance Wallet Suspends Team Member Over Insider Trading Claims.

Binance Wallet Team Suspends Employee Over Front-Running Claims

Binance has suspended a staff member accused of front-running a token launch using confidential information from a previous role. However, the company did not disclose which token was involved and confirmed that no insider trading took place.

In an announcement on X, the Binance Wallet team stated that the employee allegedly used multiple wallets to buy tokens before a Token Generation Event (TGE), later selling some for quick profits.

“This type of behavior—leveraging non-public information from a prior position for personal gain—violates our company’s policies and ethical standards,” the Wallet team said in its statement.

After an internal investigation, Binance determined that no current Wallet team members engaged in insider trading. The company clarified that the accused employee accessed the information during their tenure at BNB Chain, rather than through their position on the Wallet team.

Binance also pledged full cooperation with authorities and stated that legal action would be pursued if necessary.

The incident is reminiscent of Coinbase’s 2023 case, where former manager Ishan Wahi admitted to leaking token listing details to his brother and another associate. Coinbase later became involved in a legal battle with the SEC, disputing claims that the tokens Wahi traded were securities.