Binance Suspends Employee for Allegedly Using Insider Information to Promote Newly Launched Token on Social Media

Binance Employee Suspended for Using Insider Information to Promote Token on Social Media

A Binance employee has been suspended after allegedly using insider knowledge to post about a newly issued token on the exchange’s official X account, raising fresh questions about employee conduct and market fairness.

The incident reportedly took place within a minute of the token’s launch, prompting swift action from Binance.

How Insider Access Turned Into Personal Gain

According to Binance, a preliminary investigation revealed that the employee had connections to the token, which was issued on 7 December 2025.

Less than a minute after the asset went live on-chain at 05:29 UTC, the individual allegedly shared a promotional post through the @BinanceFutures X account, including both the token’s text and images.

Binance described the behaviour as “abuse of their position for personal gain and violate our policies and code of professional conduct.”

The post in question, which has since been deleted, featured an image of a tree with tokens hanging from it, widely interpreted by users as referencing a BNB Chain token dubbed “Year of Yellow Fruit.”

Binance confirmed that it contacted the relevant authorities in the employee’s jurisdiction and suspended the individual pending further disciplinary measures.

Whistleblowers Rewarded for Spotting Misconduct

Binance also announced a $100,000 reward to five whistleblowers who reported the alleged misconduct through its official channel.

The exchange verified the earliest valid submissions and distributed $20,000 to each recipient, who were contacted directly via email using pseudonymised addresses.

While community members on social media helped flag the incident, Binance clarified that only reports submitted through its official whistleblowing platform qualified for the reward.

Is This a Repeat of Past Issues

This is the second reported insider-related incident at Binance this year.

In March 2025, the exchange suspended a Binance Wallet employee for allegedly using privileged information to buy tokens ahead of a Token Generation Event (TGE) and later selling them for profit.

That case also triggered a $100,000 whistleblower reward, shared among four individuals.

Binance Reaffirms Commitment to Market Integrity

Binance emphasised that protecting user trust remains a top priority.

The exchange stated,

“Binance always adheres to the principle of putting users first, upholds the values of openness, fairness, and justice, and has zero tolerance for any violations.”

Internal audits are being strengthened to prevent employees from misusing privileged access, and further updates are expected once the investigation is complete.

The incident has reignited discussion across the crypto sector about the risks of insider trading and the challenges exchanges face in maintaining transparency when market-moving information can be instantly shared.