Crypto exchange Binance has initiated a $5 million bounty program seeking information on potentially corrupt staff members after facing allegations that its crypto token listings may be front-run due to leaks. The move comes in response to recent controversies surrounding token listings and perceived insider trading on the platform.
Binance co-founder Yi He revealed in a series of posts on X that the exchange had witnessed “heated discussions” within the community following a sharp drop in the price of Ronin (RON) after its listing on Binance. While some community members suggested that the decline was due to leaks from inside Binance, Yi He stated that users had discovered blockchain data indicating that the exchange was preparing to list the token.
RON, the native token of the gaming-focused blockchain Ronin, experienced a price gain of over 30% in the week leading up to Binance’s listing announcement. However, it saw an 18% decline in the hour after the listing announcement and a more than 26% drop on the day.
The Ronin incident occurred just two weeks after Coinbase director Conor Grogan alleged the discovery of multiple wallets exhibiting a pattern of purchasing tokens shortly before their listing on Binance, followed by selling them after the announcements. Grogan speculated that these wallets might belong to a “rogue employee connected to the listings team” with access to information on new token listings or a trader exploiting test trade leaks on the exchange.
In response to the concerns and allegations, Yi He announced that Binance would revamp its token listing process. Key elements of the response include:
The bounty program aims to incentivize individuals with information about corrupt practices within Binance and strengthen the integrity of the exchange’s operations.
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