Home » Insider trading at Binance? Exchange offers up to $5 million to find possible culprits

Insider trading at Binance? Exchange offers up to $5 million to find possible culprits

by Patricia

On Monday, Ronin’s RON token fell sharply, just after its listing on Binance, triggering intense questioning within the community. Faced with suspicions of insider trading, Yi He, the exchange’s co-founder, spoke out on X, promising $10,000 to $5 million for anyone who could identify any “corrupt employees”.

Sudden drop in Ronin’s RON sparks controversy after listing on Binance

On Monday, Binance listed Ronin’s RON token on its platform, and the token’s price plummeted from $3.6 to $2.8 in just one minute, trading at $2.54 at the time of writing.

This sudden drop was all the more surprising given the RON’s impressive 87% year-to-date performance.

The incident caused quite a stir in the community, so much so that it prompted Binance co-founder Yi He to take the floor in a long thread on X:

She first explains that attentive users were able to guess the token’s imminent listing on the platform, thanks to clues left by the exchange’s on-chain activity. This could explain the asset’s recent performance.

Faced with this, new measures have been taken and future quotes could be cancelled in the event of leaks. In addition, Yi He explains that if an employee were caught leaking this type of confidential information, he or she would be warned initially and fired in the event of a repeat offence.

Insider trading within the platform?

Less than 2 weeks ago, Coinbase’s CEO suggested that insider trading might be at work at Binance, given a recurring tendency for certain addresses to buy tokens just before they are listed on the platform, only to resell them immediately afterwards:

So, the latest events on Ronin’s RON could have some similarities, and in the face of this, the exchange seems determined to crack down.

Indeed, Yi He has promised between $10,000 and $5 million to anyone who can identify “corrupt Binance team members”. What’s more, she explained that the sanctions would go even further, as any projects or investment funds that subsequently recruited such people would then be placed on “Binance’s permanent blacklist”.

If such a drift were to be proven, it wouldn’t be the first time in the ecosystem. Former Coinbase and OpenSea employees, for example, have already had to face justice for insider trading.

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