Binance has initiated a bounty program, offering rewards of up to $5 million for credible information uncovering potential corruption within its staff.
This move follows allegations of insider trading, particularly relating to the token listing procedure. Recently, the Ronin token (RON) was added to Binance on February 5. Before the listing announcement, RON experienced a significant 30% surge in value over a week.
However, shortly after its listing, RON plummeted by approximately 18% within an hour and ultimately ended the day with a 26% decline.
Speculation arose due to sudden price movements, suggesting potential leaks and allowing traders to anticipate listings. Binance co-founder Yi He mentioned that some users accessed blockchain data indicating Binance’s listing plans.
Despite the controversy, Binance plans to revamp its listing process for trust restoration. The new measures include stricter internal communication controls and enhanced monitoring of team members involved in listings.
Employees leaking listing information will receive warnings for first offenses and face termination for repeat violations.
A bounty program offers rewards ranging from $10,000 to $5 million for verified tips uncovering corruption in token listings and related areas. Projects hiring terminated Binance staff will be permanently blacklisted. Binance is also tightening external communication protocols regarding listings and will cancel any premature leaks.
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