Crypto exchange Binance has announced a reward program offering $100,000 to $5 million for individuals who provide them with reports regarding potential insider trading or corruption within the exchange. On March 16, Binance unveiled that it would be listing Book of Meme (BOME), a Solana-based memecoin, on their platform. BOME was made available for trading with various currencies such as Bitcoin, Tether, First Digital USD, and the Turkish lira. Binance Futures revealed plans to list a USDS-M BOME perpetual contract with leverage of up to 50x.
Prior to the listing on Binance, a large-scale investor purchased 314 million BOME tokens on the decentralized exchange Raydium for $2.3 million at an average price of $0.0074. Soon after the listing, the token’s value surged to a high of $0.026, increasing its overall worth to approximately $8 million. This sudden increase in value triggered suspicions within the community, with some alleging insider trading. Speculations arose on Reddit, with community members discussing whether the trade was a result of luck or an insider tip. There were even suggestions that the trader could have been connected to Binance.
Responding to the allegations, Binance released a statement on X stating that they had initiated an investigation into the insider trading claims related to the BOME listing. During their preliminary inquiry, Binance concluded that the individual in question had no affiliation with the exchange. Alongside this announcement, Binance encouraged the community to continue reporting any potential instances of insider trading or misconduct within the exchange. They further declared that individuals who provided relevant reports would be rewarded with a sum ranging from $100,000 to $5 million, and that the sender’s identity would remain confidential. Binance assured that they would conduct a thorough investigation and make their findings public.
Emphasizing their commitment to maintaining a transparent trading environment and preserving market fairness, Binance acknowledged that while some investors had benefited greatly from the Solana memecoin frenzy, not everyone had experienced such luck. One trader, in particular, missed out on potential gains amounting to millions. This trader had bought BOME tokens early but sold 170 million of them for $131,000 just a day before the token’s price skyrocketed. At present market prices, those tokens would have been valued at $2.3 million.
Binance’s proactive approach to investigating insider trading claims is exactly what the crypto industry needs. Their commitment to transparency and market fairness is truly commendable.