- Binance suspended a Wallet team employee for allegedly front-running a token launch using insider info from a past role at BNB Chain.
- The staffer used multiple wallets to buy tokens before a Token Generation Event (TGE) and sold them for quick profits—violating Binance’s policies.
- Binance says no other team members were involved and is cooperating with authorities, echoing a similar insider scandal at Coinbase in 2023.
On TueOn Tuesday, the Binance Wallet team dropped a post on X (yep, Twitter, but new-age) announcing they’ve suspended one of their own. The employee in question? Accused of front-running a token launch using info they picked up from a past gig at BNB Chain. Not a great look.
According to the post, the person allegedly used multiple wallets to scoop up a batch of tokens before a scheduled Token Generation Event (TGE), then flipped part of that stash for a quick payday. Classic move—buy before the pump, sell into the hype.
“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 in a statement.
Wallet Team Cleared—But That Doesn’t Mean It’s Over
Now, for what it’s worth, Binance says there’s no proof the Wallet team as a whole was involved. They clarified that the insider info was accessed while the employee worked at BNB Chain, not during their time on the Wallet side of things.
So basically, one rogue actor—not a team-wide scandal.
No Insider Trading by the Team—But Legal Action Coming
While it looks like a one-person operation, Binance isn’t taking this lightly. They’ve kicked off a formal investigation and mentioned they’ll cooperate with authorities to explore legal steps. Expect more to come on that front.
Echoes of the Coinbase Scandal
And for those with a good memory? This sounds a lot like the Coinbase drama from 2023, when Ishan Wahi, a former product manager, got busted for tipping off his brother and buddy about token listings. That whole mess spiraled into a fight with the SEC over whether the tokens involved were securities.
This time around, Binance seems eager to distance itself from the scandal—and probably hoping to avoid that kind of legal mudfight.
