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Binance Announces $5M Reward over Tip-offs Concerning Insider Trading

As per reports, Binance will reward the people who would provide information regarding the likely corruption or insider trading that takes place within its platform.

Claudia Fischer

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Binance Announces $5M Reward over Tip-offs Concerning Insider Trading

Binance, a popular crypto exchange around the world, has recently announced a reward of up to $5M for informers. It will reportedly give these rewards to the people who would provide information regarding the likely corruption or insider trading that takes place within its platform. On the 16th of this month, the firm disclosed the listing of Book of Meme (BOME), a Solana-based memecoin.

Binance Allocates $5M in Rewards for Reporting Insider Trading

The crypto token had been paired with diverse currencies such as Turkish lira, First Digital USD, Tether, and Bitcoin (BTC). In addition to this, Binance Futures disclosed to list a perpetual contract of USDS-M BOME. This contract would have a leverage of nearly 50x. Before the listing on the crypto exchange, a crypto whale purchased 314M BOME tokens.

The whale recompensed $2.3M for the respective tokens on the decentralized exchange Raydium. In this respect, $0.0074 was the average price of the purchased tokens. Following the listing, the tokens’ value jumped to a high spot of approximately $0.026. As a result of that, the respective tokens saw a huge jump and their value touched almost $8M.

Also Read: Binance and SEC Hearing Rescheduled

The respective event ignited several discussions in the community. Some of the community members alleged that this was an instance of insider trading. One of the community members raised a question regarding it as a result of an insider tip or a lucky trade. However, another proposed that the trader could have a link with Binance as an insider.

Crypto Exchange Denies Any Links with Accusations

While responding to this, Binance noted on X that it had initiated an investigation concerning the insider trading accusations. According to the platform, the preliminary investigation shows no links between the allegations and the crypto exchange. The firm persuaded people to keep on reporting potential misconduct or insider trading events.

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