Binance Offers Up to $5M Reward for Insider Trading Tips Amid Memecoin Controversy
Summary:
Binance, the crypto exchange, has promised a reward of $100,000 to $5 million for information about insider trading or corruption within their system. This follows the listing of a Solana-based memecoin, which was bought in bulk by a crypto whale prior to the listing at a low price, with the value soaring post-listing. This has prompted suspicions of insider trading, leading to Binance conducting investigations and encouraging the public to report any potential misconduct.
Binance, the digital currency exchange, has promised a reward ranging from $100,000 to $5 million to individuals who inform them of potential insider trading or corruption within their system. On March 16, Binance introduced trading of the Solana-based memecoin, Book of Meme (BOME), pairing it with Bitcoin (BTC), Tether (USDT), First Digital USD, and Turkish lira. The listing also included a perpetual contract of USDS-M BOME offered by Binance Futures, allowing up to 50x leverage. Prior to Binance listing, a cryptocurrency whale purchased 314 million BOME tokens for $2.3 million on the Raydium decentralized exchange (DEX) at an average price of $0.0074. Post-listing, the token's value soared to a high of $0.026, catapulting the worth of these tokens to approximately $8 million. Following the listing, suspicions of insider trading were raised, inciting online debates on platforms like Reddit. Despite the controversy, Binance stated following a preliminary probe that the main person under suspicion seemed to have "no connection with Binance", but committed to further investigations. Urging the public to continue reporting any potential insider trading or misconduct, Binance offered a reward of up to $5 million while promising anonymity to the informant. Reiterating its aim to uphold a transparent trading environment, Binance promised to disclose its findings and block any activity that might compromise market fairness. Nonetheless, not all traders struck gold during the Solana memecoin rush. On March 15, a trader lost out on potentially millions in profit by prematurely selling 170 million tokens for $131 thousand the day before BOME's price rose dramatically. Had they held on, these tokens would now have been valued at roughly $2.3 million.
Published At
3/18/2024 2:09:15 PM
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