Binance crypto exchange intends to pay individuals with a pledge of $100,000 to $5 million for information about insider trading or corruption within the exchange.
Binance announced on March 16 that it would incorporate the Solana-based memecoin Book of Meme (BOME) into its exchange portfolio. The Turkish lira, Bitcoin, Tether, and First Digital USD were co-porations for the token. The company added that Binance Futures will also list a USDS-M BOME perpetual contract with a maximum leverage of 50x.
A crypto billionaire purchased 314 million BOME tokens on the Raydium decentralized exchange (DEX) for $2.3 million at an average price of $0.0074 before the Binance listing. Following the listing, the tokens’ value skyrocketed to $0.026, equating to an estimated $8 million.
The flagging of the trade after its listing incited community discourse, with certain individuals contending that this trade constituted an insider transaction.
A community member inquired on Reddit whether they believed it to be a fortunate trade or a confidential tip, while another suggested the trader might be a Binance insider.
Binance issued the following statement on X: “We have initiated an investigation into the allegations of insider trading about the exchange’s listing of BOME.” According to Binance’s initial inquiry, the individual implicated in the allegations had “no affiliation with Binance.”
Binance also urged community members to continue reporting any possible insider trading or other misconduct associated with the exchange in its announcement.
After receiving pertinent reports, the trading platform declared that it would pay a reward of $100,000 to $5 million and assured the sender of the confidentiality.
The exchange stated that it would conduct an exhaustive investigation and release its findings to the public. Additionally, Binance sought to preserve a transparent trading environment and prohibit any conduct that might compromise market fairness.
Although a few individuals achieved phenomenal profits amid the Solana memecoin mania, fortune did not favor all. A trader who purchased BOME very early on March 15 lost the opportunity to amass millions of dollars in profits by selling their tokens the day before the token’s price skyrocketed.
Before the token depreciated, the speculator sold 170 million tokens for $131 thousand. The tokens were worth $2.3 million at the current rate of exchange.
