- Binance suspends an employee for posting token information seconds after issuance.
- Exchange awards $100,000 bounty split equally among five verified whistleblowers.
- Former CEO CZ offers to forward misconduct reports through the appropriate channels.
Binance suspended an employee on December 7, 2025, following an internal investigation into insider trading allegations. The exchange’s audit department received a report claiming an employee used insider information to post on official social media for personal gain.
Binance verified that the employee in question possessed information about a token issued on-chain at 05:29 UTC on December 7. Less than one minute after the token launched, the employee posted text and images about the token through the Binance Futures account. The exchange stated these actions constitute abuse of position for personal gain and violate company policies.
The employee was suspended immediately pending further disciplinary measures. Binance has contacted authorities in the employee’s jurisdiction and plans to take appropriate legal action in accordance with applicable laws. The exchange stated it proactively reached out to law enforcement regarding the incident.
Binance distributed $100,000 in bounty rewards equally among five whistleblowers who submitted the earliest valid reports through the official channel. The exchange completed verification and de-duplication processes for submissions. Binance will contact them directly via email regarding the reward distribution.
The exchange noted that some reports appeared publicly on X but clarified that rewards apply only to submissions through the official channel. This policy protects whistleblower interests and ensures proper verification processes.
Former Binance CEO Responds to the Situation
Former Binance CEO Changpeng Zhao commented on the incident in a post. He offered to channel misconduct reports appropriately despite no longer running the exchange. CZ stated that reports can be sent via direct message or comment.
However, CZ cautioned against false reports, noting that a previous whistleblower provided no evidence and then requested consideration for a coin listing. He stated that the current case had already been reported to the police and that Binance works closely with law enforcement in all countries.
Binance emphasized its zero-tolerance policy for misconduct and commitment to transparency, fairness, and integrity. The exchange stated it will strengthen internal controls and refine policies to prevent similar incidents. The company encouraged continued community oversight through its official whistleblowing channel.
Related: Binance Becomes First Global Exchange With Complete FSRA Approval In Abu Dhabi
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Source: https://coinedition.com/binance-suspends-employee-over-insider-trading-incident-awards-100k-to-whistleblowers/
