Binance Employee Suspended Over Insider Trading Allegations

A recent incident at Binance has sent shockwaves through the cryptocurrency community. An employee has been suspended due to allegations of insider trading, specifically linked to the launch and promotion of a new cryptocurrency token. This development raises significant questions about transparency and ethical practices within one of the world’s leading cryptocurrency exchanges.

Key Takeaways

• Binance has suspended an employee accused of misusing insider information to promote a new token on social media for personal gains.
• The token, "Year of Yellow Fruit," was issued just seconds before an official Binance Futures post hyped it.
• An internal investigation confirmed policy violations, and authorities in the employee’s jurisdiction have been notified.
• A whistleblower reward amounting to $100,000 will be distributed among the five earliest valid reports.

What Happened?

On December 7, Binance’s internal audit team received an alarming report about potential misuse of confidential information. In a staggeringly short turnaround, a newly launched token made its debut on the blockchain, subsequently being promoted through Binance Futures’ official social media channels. Responding rapidly to these allegations, Binance suspended the implicated employee and verified that internal policy violations had indeed occurred.

On December 7, 2025, Binance’s internal audit department received a report alleging that a Binance employee had used insider information to post on official social media and improperly obtain personal gain. We immediately launched an investigation. — Binance Futures

Employee Exploits Insider Knowledge to Boost New Token

On the same day of the incident, Binance confirmed that an employee had leveraged insider access to promote the newly created token through its official @BinanceFutures account. This promotion occurred mere moments after the token, known as "Year of Yellow Fruit," was issued on-chain at 05:29 UTC. The rapid posting of content appeared coordinated and led to a surge in the token’s value.

The token was not part of any official Binance Futures promotional strategy, which made its swift price escalation particularly concerning. Following its launch, "Year of Yellow Fruit" saw decentralized trading activity surge, reaching a market cap of roughly $5 million.

• The leading wallet reportedly extracted $55,600 in profits after the token’s value spiked twice.
• Prices jumped from $0.000023 to $0.0006, amassing around 2,300 holders.
• Total liquidity remained relatively low at $278,000, contributing to its heightened volatility.

Furthermore, AI-powered launch bots that monitor the market instantly detected the token, adding to its visibility and liquidity. However, Binance has clarified that it had no direct involvement with the token’s creation or subsequent trading activities beyond the implicated employee’s misconduct.

Binance Acts Swiftly with Investigation and Whistleblower Rewards

Following the suspension of the employee, Binance emphasized its commitment to integrity and compliance. The company confirmed it had contacted the relevant authorities and that appropriate legal actions would ensue.

In an effort to encourage transparency, Binance also verified reports submitted through its official whistleblower channel. The $100,000 reward is slated to be split among the five earliest verified reporters. It’s important to note that reports shared publicly on platforms like Twitter do not qualify for the reward unless submitted through the designated channels.

This marks the second instance in 2025 where Binance has had to suspend employees for improper use of insider information. A prior incident in March involved another employee profiting $113,000 through unauthorized trades made before a public token release.

CoinLaw’s Takeaway

As someone who has closely followed Binance’s operations, it’s disheartening to witness how insider opportunities can compromise even the most robust systems. This incident starkly illustrates how a single social media post can trigger market volatility. The proactive measures Binance has taken, including public disclosure and rewards for whistleblowers, underscore the importance of accountability. In a rapidly evolving industry like cryptocurrency, these actions are critical in restoring trust and ensuring that ethical standards are upheld.