Binance, the world’s largest cryptocurrency exchange, has suspended employees who have been accused of trading with privileged information prior to the Token Generation Event (TGE).
Through a statement, Binance reported it The defendant is a member of the Vinanence Wallet Team.. In this role, “there is no commercial relationship or collaboration with the project in question,” but it is discovered that the author of the suspect incident “has held his position in the BNB chain business area before joining the wallet team a month ago,” and therefore is believed to have access to privileged information.
The text will provide details on the operations that the accused would have made to benefit. “Employees knew the project was planning a TGE and foreseen a great deal of interest in the community. Before the project token was published, employees used multiple linked wallet addresses to purchase a large amount of these assets,” they explained from the exchange.
tge is the process Teams launch and place digital assets for the first time. This event is important in the development of the project, as these tokens or cryptocurrencies will be accessible to investors, users and ecosystem members.
Depending on the team’s strategy, TGE can be implemented through public or private sales, decentralized (DEX) or central exchange offers, or distribution of tokens to the first taxpayer.
After TGE, the defendant sold some of his assets and earned significant profits, but the remaining tokens still had not maintained a significant profit. Although it is not detailed in the statement, it may have decided not to sell it without any kind of doubt.
“This action constitutes the operation of assets based on private information obtained from previous positions and constitutes a clear violation of the company’s policies,” they warned from the company.
As explained by Cryptonoticia, this operation is known as “insider trading” and consists of using privileged information to work in the market favorably. If an event that could affect the price of an asset can make a purchase or sale decision before the information is published, an inappropriate profit can be obtained, if the person knows in advance.
The name of the asset was not made clear in the statement, but X user criticized it This project is UDEX (UUU), a memo coin for the BNB chain network.
A user @PyCharts sharing warned that this fraudulent action was related to wallet addresses linked to employees on the Binance Wallet Business and Growth Growth team.
From Binance, they work with relevant authorities in the jurisdiction of the accused to “take relevant legal action in accordance with the applicable law. All related assets will be managed in full compliance with applicable laws and regulations.”
Additionally, they confirmed that they would distribute a $100,000 reward among those who denounced the facts and sent reports used in the investigation.
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