Crypto exchange Binance has launched a rewards program where people can earn between $100,000 and $5 million by providing information about possible insider trading or corruption within the platform. This initiative comes amid controversy surrounding the recent purchase of 314 million Book of Meme (BOME) tokens by a crypto whale just before it was listed on Binance.
The Solana-based memecoin BOME was listed by Binance on March 16 and was available for trading against Bitcoin, Tether, First Digital USD and the Turkish lira. Prior to this listing, an individual purchased the tokens for an average price of $0.0074 through Raydium, a (nominally) decentralized exchange. That move attracted attention after the price rose to $0.026, increasing the value of the tokens to around $8 million.
Speculation about BOME and Binance
This transaction caused a wave of speculation within the community, with some suggesting that this may have been a case of insider trading. Binance responded by launching an investigation into the allegations and assured that the person in question had no connections to the company.
Binance encourages everyone to report suspicious activity, promising to ensure informant anonymity and make the results of their investigations public.
The reward structure for reporting potentially illicit activity is not unique to Binance; other platforms have similar programs to improve security and fairness.
Binance response
The (translated) response from Binance:
“Recently we noticed community discussions surrounding the alleged ‘BOME insider trading’ incidents at Binance. We take this information very seriously and have immediately initiated an internal investigation based on the relevant indications. According to our preliminary investigation results, the person mentioned in the information has no connections to Binance.
We are sincerely grateful for everyone’s continued attention and oversight at Binance. The community’s suggestions are crucial to us; therefore, we pledge to continue our investigation to ensure transparency and fairness of the facts. If you have any reports of IPOs or other corrupt activities, such as verified corruption within the Binance team, while protecting your identity, we will offer a reward of US$100,000 to US$5 million.
Message email: [email protected]
We are always committed to maintaining a fair and transparent trading environment and preventing conduct that could affect market fairness. We will take all necessary measures to thoroughly investigate any misconduct and make the results publicly known. Thank you again for your support and understanding. We will share any updates in this process with you in a timely manner.”
Source: https://bitcoinmagazine.nl/nieuws/bome-token-binance-handel
