Binance Wallet Suspends Employee Following Insider Trading Investigation

Binance Crypto Regulations

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

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Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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Last updated: 

March 24, 2025

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Binance Wallet has suspended an employee after investigating alleged insider trading tied to a recent token launch.

The company disclosed on Tuesday that this employee previously held a business development role at BNB Chain. He allegedly used non-public information to front-run a Token Generation Event (TGE) and profit from early token purchases.

Binance Wallet said the individual allegedly anticipated the token launch’s timing and its impact.

Former Role Allegedly Enabled Staffer to Front-Run Launch

Additionally, the Wallet team says it had no formal ties to the project. However, the employee allegedly used insights from his previous role. He bought tokens through multiple linked wallets before the public announcement.

Further, the employee sold part of the tokens shortly after the launch, making significant profits. He kept the rest for possible future gains.

“This behavior constitutes front-running based on non-public information obtained from his previous role and is a clear breach of company policy,” the Wallet team said.

This employee had only recently joined Binance Wallet. This raises concerns about internal safeguards during team transfers. Binance Wallet claims it had no access to private project data. However, the case shows how sensitive information can be misused without proper controls.

Crypto Insider Trading Cases Spark Demands for Accountability and Reform

Insider trading in crypto is facing growing scrutiny from regulators and companies. It hurts market fairness, damages trust and gives unfair advantages. In this context, the Binance case joins a list of high-profile incidents pushing for stronger oversight and legal action.

In response, Binance Wallet said it will work with authorities in the employee’s region and take legal action as per local regulations.

Notably, the case bears resemblance to past scandals in the crypto space. In 2023, former Coinbase manager Ishan Wahi was sentenced to two years in prison after pleading guilty to leaking token listing information.

Likewise, that same year, former OpenSea product head Nate Chastain was convicted of insider trading for using his position to profit from NFT listings, becoming the first person in the US to be prosecuted for insider trading involving NFTs.