Binance Suspends Employee for Insider Token Promotion, Rewards Whistleblowers

Binance suspended an employee for using insider information to promote a new token via its official X account. The company alerted authorities, rewarded whistleblowers, and pledged stricter controls.

Binance has suspended at least one employee and initiated legal proceedings after an internal investigation revealed the use of insider information to promote a newly launched token, "Year of Yellow Fruit," via the official Binance Futures X account. The incident occurred on December 7, 2025, when the employee posted about the token less than a minute after its on-chain issuance, leading to suspicions of insider trading. The token quickly reached a market cap of up to $5 million before experiencing a sharp decline. Binance responded by suspending the employee, alerting law enforcement, and launching additional disciplinary actions. The company also awarded $100,000 to whistleblowers who reported the misconduct through official channels, emphasizing that only such reports are eligible for rewards. Binance reiterated its zero-tolerance policy for internal misconduct, pledged to strengthen internal controls, and encouraged the community to continue reporting suspicious activities. This marks the second such incident at Binance in 2025, highlighting ongoing challenges in maintaining market integrity.