Binance, a prominent cryptocurrency exchange, has unveiled a $5 million reward program to gather information regarding any potentially corrupt staff members following allegations of crypto token listing impropriety stemming from insider leaks.
On February 5th, Binance co-founder Yi He acknowledged that “heated discussions” had arisen within the crypto community following a sudden price drop in Ronin (RON), a gaming-focused blockchain token, shortly after it was listed on the exchange.
Speculations had circulated about potential insider leaks from within Binance, but Yi He countered these claims by stating that users had discovered blockchain data indicating preparations for the token’s listing.
CoinGecko data revealed that RON experienced a remarkable 30% price surge in the week leading up to its Binance listing announcement. However, it suffered an 18% drop within just an hour of the listing, eventually plunging over 26% on the same day.
This incident transpired just two weeks after Coinbase director Conor Grogan raised concerns about the existence of multiple wallets exhibiting a pattern of buying tokens shortly before they were officially listed on Binance, followed by selling them after the listings.
Grogan suggested that these wallets might be associated with a “rogue employee connected to the listings team” or a trader who had access to test trade information.
In response to these concerns, Yi He announced a comprehensive overhaul of Binance’s token listing procedures.
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This revamp includes the establishment of a $5 million reward for validated information regarding corrupt staff members, exceeding the potential profits from illicit activities.
Team members involved in the token listing process will now be subject to stricter oversight, and any instances of leaked information concerning upcoming listings will lead to warnings for first-time offenders and dismissal for repeat offenders, Yi He asserted.
Additionally, individuals providing information exposing corrupt Binance team members in the token listing process or elsewhere may receive bounties ranging from $10,000 to $5 million.
To further enhance security, Binance will permanently blacklist projects that hire staff members terminated from the exchange due to corruption.
Project owners are urged to reach out to Binance for background checks before engaging with any potentially tainted individuals.
Furthermore, Binance will heighten its external communications security, emphasizing that token listings may be canceled if sensitive information is leaked prematurely.
Technical monitoring improvements are also on the agenda to safeguard against automated scripts reacting to token listing news.
Binance’s proactive measures reflect its commitment to maintaining trust and integrity within the cryptocurrency space while fortifying its reputation as a reliable and secure platform for traders and investors alike.
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