Binance Wallet Takes Action Against Staff Member for Alleged Front-Running.

Binance Suspends Wallet Team Employee Amid Front-Running Allegations

Binance has suspended a staff member accused of front-running a token launch, though the company did not specify which token was involved. The exchange also confirmed that no insider trading took place.

In a statement posted on X, the Binance Wallet team announced that the employee allegedly used confidential information from their previous position at BNB Chain to buy tokens through multiple wallets before a Token Generation Event (TGE). The individual later sold a portion for quick profits.

“This behavior constitutes front-running based on non-public information from a prior role, which is a clear violation of company policy,” the Wallet team said in its statement.

Following an internal review, Binance determined that no current Wallet team members were involved in insider trading. The company clarified that the information used by the employee was obtained while working at BNB Chain, not from their role in the Wallet team.

Binance also stated that it will work with relevant authorities to ensure appropriate legal action is taken.

The situation is reminiscent of Coinbase’s 2023 scandal, where former product manager Ishan Wahi admitted to leaking token listing details to his brother and another associate. Coinbase later challenged the SEC’s claims that the tokens involved in Wahi’s insider trading were securities.

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