Binance Instigates $5M Whistleblower Program Amid Corruption Allegations
Summary:
Binance, a leading cryptocurrency exchange, has instituted a $5 million bounty program for information about corrupt staff. This follows a controversial price plunge of the Ronin (RON) token after its listing on Binance, which raised concerns of internal information leaks. Co-founder Yi He has assured stricter controls on staff and an overhaul of the token listing process. Additionally, Binance promises to pay from $10,000 to $5 million for evidence of corruption within its ranks and will permanently ban projects employing former staff found culpable of corruption.
In the wake of allegations suggesting potential corruption within its ranks, cryptocurrency exchange Binance has unveiled a $5M reward scheme for credible information regarding unscrupulous employee activities. Sparking a series of intense community dialogues were the echoes of Binance's recent listing of the Ronin (RON) token, which was marred by a sudden price fall. Accusations pointed towards a potential internal breach on Binance's part, but Binance co-founder Yi He clarified that the readiness of the exchange to receive the token was disclosed via publicly-available blockchain data. CoinGecko data reflected that RON experienced over 30% price surge in the week proceeding its listing on Binance but witnessed a steep drop by 26% on the listing day and 18% immediately after its listing was made public. Yi He further unveiled the company's plan to revamp its token listing process and strictly enforce stricter regulations on employees involved in the process. Erring employees involved in leaking information about upcoming listings would face stringent consequences including termination. Moreover, Binance is incentivizing whistleblowers who provide verifiable data about corrupt practices within the company, promising bounties ranging from $10,000 to $5 million. Projects employing ex-Binance staff involved in any corrupt activities would also face a permanent ban. Binance stresses the need for projects to conduct background checks and promises to improve its technical scrutiny and further strengthen external communications to prevent advanced token listing leaks. Despite the encryption of its listing announcements, Yi He acknowledges the potential of automated scripts that might exploit Binance's news updates.
Published At
2/6/2024 9:39:24 AM
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