Binance, one of the world’s largest crypto currency exchanges, dismissed an employee who was found to have done transactions with inside trading. It turned out that the employee made serious gains by making purchases before the token listing announcements. Due to this ethical violation, Binance both removed the employee and began to take legal steps on the subject.
Pre -purchased with confidential information
Binance, on March 23 on the complaints on the internal investigation by launched an internal employees to leak information from the inside of the transaction determined. According to the investigation, this person made a purchase through multiple wallets using token listing information that has not yet been announced to the community.
With the rise of the price after the token listing, the employee provided a significant amount of profit by selling some of these assets. Binance announced that it was immediately dismissed and legal processes were initiated, even though he does not explain the identity of the employee.
100,000 dollars were given to those who reported
Binance gave a total of 100,000 dollars to four people who played a role in the emergence of the incident. The Borsa emphasized that it is unacceptable for employees to abuse their access to information from inside and stated that they have continued the award -winning notification programs that encourage employees to prevent such ethical violations.
In addition, Analysis by Wu Blockchain revealed that a wallet called Freddie NG, a Binance employee allegedly associated with the incident, made a profit of $ 113,000. It is claimed that the wallet purchased 24.1 million UUU Token worth $ 6,227 and then earned a serious gain by selling 6.02 million token. The remaining 18,09 million UUU Token is distributed to nine different wallets.
Hard measures against internal information by Binance
Binance announced that it has implemented zero tolerance policy to prevent such ethical violations. The company said that it will take harsh measures against people who are processed with information in order to ensure fair transactions in the market. Binance officials, working with the authorities in cooperation, using information from the inside of the unjust profits will face legal processes announced.
This is not a large crypto currency exchange with the first information on the transaction scandal. Last year there was a similar incident in Coinbase, and a manager admitted that he had been processing information by leaking information from the inside. In order to prevent such events, Binance announced that it has created a notification system that offers up to $ 10,000 for its employees. These measures taken by Binance are seen as an important step towards deterring the use of information from inside. However, this has led to new controversy on how to fight unethical transactions in crypto money markets.
