Binance Cracks Down on Insider Trading with $2 Million Frozen in Suspicious Crypto Address
The CEO of Binance, Changpeng 'CZ' Zhao, has confirmed that the exchange has frozen $2 million concerning a crypto address associated with an alleged insider trader.
In response to FatMan Terra’s tweet, CZ stated that Binance had frozen the funds before the Twitter thread was posted.
The exchange is committed to fighting potential leaks and welcomes any reports of such activity in the future.
The crypto influencer used on-chain data to describe the trader’s activities and how they were uncovered.
FatMan Terra also referred to a January report that cited 16 possible instances of insider trading on Binance, which generated a total profit of $1.4 million.
The trader’s identity remains unknown, but their trade pattern suggests that they have access to inside information about Binance listings.
Binance has an internal security team that monitors multiple platforms for possible employee trading activity and operates a zero-tolerance policy towards insider trading.