Crypto exchange Binance has suspended an employee following an internal investigation into alleged insider trading involving a recent token launch. The company said it uncovered evidence that the staff member used privileged information from a previous role to front-run trades and secure improper profits.

According to a statement released on March 25, Binance’s Internal Audit team began looking into the matter after receiving a whistleblower complaint on March 23. The allegation claimed that a Binance staffer had exploited non-public information to make advantageous trades ahead of a project's Token Generation Event (TGE).

The investigation found that while the employee was part of the Binance Wallet team at the time of the incident—an area with no access to token launch data—the individual had previously worked in business development at BNB Chain, a Binance-linked blockchain platform. Binance said the employee leveraged knowledge from that prior role to anticipate the TGE and used several linked wallets to buy up the project’s tokens before the public announcement.

Once the token went live, the employee quickly sold part of the holdings for a profit, while retaining the rest, which had significantly increased in value. Binance determined this conduct violated its internal policies and qualified as front-running—trading based on material, non-public information.

“This behavior constitutes a clear breach of company policy,” the exchange stated, adding that the staff member has been suspended and may face further disciplinary and legal consequences. Binance also said it would cooperate with relevant authorities in the employee’s jurisdiction and ensure all actions align with applicable laws.

In a move to bolster accountability, Binance confirmed it has awarded $100,000 to four whistleblowers who reported the misconduct through the exchange’s official channel. While some tips were shared publicly on social media, Binance clarified that the reward program applies only to verified reports submitted through its internal email.

The company reaffirmed its “zero tolerance” stance on misconduct and emphasized plans to tighten internal controls and improve oversight. “We uphold a user-first principle and are committed to transparency, fairness, and integrity,” the statement said.

The company encouraged users to continue reporting suspicious activity through its official audit channel, pledging to maintain a “transparent, healthy blockchain ecosystem.”

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