BNB Chain Sues Former Employee for Unauthorized Token Issuance

BNB Chain has taken legal action against a former employee accused of exploiting confidential information to profit from an unauthorized token issuance.

The incident emerged after Binance conducted an internal investigation following whistleblower complaints alleging that a member of its Binance Wallet team had engaged in front-running using non-public information.

The company said its preliminary investigation found that the employee used multiple linked wallet addresses to purchase a substantial amount of tokens before any public announcement, and then sold part of their holdings at a significant profit after the token generation event (TGE) announcement.

Binance characterized the conduct as front-running based on material non-public information rather than legitimate market trading, describing it as a clear violation of internal policies.