He Yi, co-founder of the Binance cryptocurrency exchange, announced a reward ranging from $10,000 to $5 million for confirming the fact of corruption among employees, while maintaining anonymity for the complainant.
感谢今天所有关心币安，热爱币安，支持币安的朋友们，也收到了很多建议，我都有认真一条上币信息泄漏的激烈讨论，通常是一些尚未RONIN上币公告发布后RONIN价格下跌By the way…
— Yi He (@heyibinance) February 5, 2024
This happened after a series of accusations against the exchange team of possible leaks of information about the listing of various coins. In particular, the community noticed a sharp drop in the price of the Ronin (RON) token after it was added to Binance.
we can tell pic.twitter.com/cBWdF4Xr0g
— Moon (@MoonGotchi) February 5, 2024
In the week preceding the announcement, RON increased by more than 30%. An hour after listing announcements on Binance it fell 18%. Over the course of a day, the price dropped by more than 26%, according to CoinGecko.
Against the backdrop of this situation, the exchange intends to review the listing process, up to its cancellation in case of information leakage, as well as tighten control over the team responsible for adding new coins.
Binance will blacklist projects that hire employees fired for such actions.
At the same time, He Yi did not rule out that trading pairs and Binance announcements are tracked by scripts.
In January, Coinbase CEO Conor Grogan noticed a number of coins that users were purchasing minutes before they were listed on Binance, and then selling them after the announcement.
It appears that there is a pattern of Binance front-running over 18+ months
I found connected wallets that:
-Bought $900k Rari seconds before and dumped minutes after listing
-Bought ~78K ERN between June 17 and June 21 and sold right after listing announcement
-Did same w/ TORN https://t.co/yAolrfeHkO pic.twitter.com/VRq3vzfcgd
— Conor (@jconorgrogan) January 23, 2023
According to his assumption, both insiders within the exchange team and third-party traders who discovered test transactions with the token on the platform could be involved in this.
Let us recall that at the end of 2023, the Hooked Protocol team was suspected of insider trading.
Found an error in the text? Select it and press CTRL+ENTER
Cryplogger newsletters: keep your finger on the pulse of the Bitcoin industry!