Binance cracks down on insider trading with leak cancellations, $5 million whistleblower rewards, and public blacklisting for corrupt employees, bolstering exchange security and transparency.
Fighting Insider Trading
Binance is tightening ship with anti-insider trading measures. A recent tweet by the company’s co-founder says that leaks mean cancellations, and that whistleblowers will be rewarded. It also stated that corrupt employees will be publicly shamed.
Binance co-founder He Yi announced a three-pronged attack on insider trading and information leaks, aiming to strengthen the exchange’s security and transparency. The new move is not unconnected to the recent listing of the Ronin token, RON, barely one week after it was rumored that the exchange will list it.
The Ronin Listing Saga
According to the post by He Yi, it has become necessary to take preventive actions owing to the recent drop in the value of the token. She wrote:
“It is not uncommon for the community to over-promote in order to maintain the popularity; but today, the price drop of RONIN after the announcement of RONIN’s listing triggered heated discussions in the community. Discussion, after internal investigation, it was found that the public chain was previously integrated to retrieve tokens for users, and it was detected by the outside that it was collected on the chain. The community began to discuss the listing of RONIN on Binance.”
Binance’s Leaks Prevetive Measures
In the light of this, Yi said that henceforth:
Any coin listing details leaked by a third party will trigger an immediate cancellation. This creates a strong disincentive for unauthorized disclosures, protecting sensitive information.
To encourage reporting of insider trading, Binance offers rewards of up to $5 million. This incentivizes individuals with knowledge of misconduct to come forward, aiding in its detection and prevention. Employees engaging in corruption or linked to illicit funds will be publicly blacklisted. This transparency measure aims to deter unethical behavior and hold individuals accountable for their actions.
Fair Market Practices
These measures demonstrate Binance’s commitment to user security and fair market practices. By deterring insider trading, preventing information leaks, and ensuring transparency, the exchange seeks to cultivate trust and confidence among its user base.