Binance fires staff over insider information for 'personal gain'

Binance has laid off one of its employees after confirming they used insider information to promote a newly launched memecoin on the platform’s official X account.

The exchange said its internal audit department launched an investigation on Dec. 7 after receiving a report that a Binance staff member had posted promotional material for an on-chain token through the @BinanceFutures account — just seconds after the token’s issuance at 05:29 am UTC.

“These actions constitute abuse of their position for personal gain and violate our policies and code of professional conduct,” Binance said. 

The company described the incident as a case of employee misconduct, confirming the staff member had been immediately suspended pending further disciplinary action.

$100K bounty for whistleblowers

The world’s largest cryptocurrency trading exchange stated that it has also contacted authorities in the employee’s jurisdiction and plans to pursue legal action in accordance with applicable laws. 

Binance emphasized its “zero tolerance” stance toward internal misconduct and pledged to strengthen oversight to prevent future breaches.

Investigation of Employee Misconduct Incident

On December 7, 2025, Binance’s internal audit department received a report alleging that a Binance employee had used insider information to post on official social media and improperly obtain personal gain. We immediately launched an…

— Binance Futures (@BinanceFutures) December 8, 2025

As part of the investigation, Binance stated that it has verified multiple valid reports submitted through its official whistleblowing channel and will distribute a $100,000 reward equally among the five verified whistleblowers.

The exchange also thanked users who shared information publicly on X but clarified that future reports should be sent directly to its official audit email to ensure privacy and eligibility for rewards.

“Together, we can uphold a transparent, healthy ecosystem and build a safer trading environment for all users,” Binance said.

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Binance's history with insider trading

Binance revealed on Mar. 23 that it had suspended a member of its Wallet team over allegations of using insider information obtained from a previous role at BNB Chain to engage in front-running, which is the act of trading tokens before their public launch.

In a statement shared on X by the Binance Internal Audit team, the exchange said the employee was suspected of “front-running using insider information” to generate unlawful profits.

Preliminary findings suggested the staff member operated multiple wallet addresses to purchase tokens ahead of a public announcement regarding the project’s Token Generation Event (TGE). Following the token’s launch on Mar. 23, the employee reportedly sold a portion of their holdings for substantial gains while retaining the rest, which remained at a “significant unrealized profit.”

Related: Binance Agrees to Deal with SEC, Losing Access to Its U.S. Operation