Cryptocurrency exchange Binance has announced that it will offer a reward of $100,000 to $5 million to those who provide them with reports of potential insider trading or corruption within the exchange.
onMarch 16, Binance announced that it would launch the Book of Meme (BOME) memecoin token based on the Solana platform. The token was paired with the tickers Bitcoin, First Digital USD (FDUSD) and the Turkish lira. In addition, Binance Futures said it will also introduce a USDS-M BOME perpetual contract with up to 50x leverage.
Prior to Binance‘s listing, a major cryptocurrency investor purchased 314 million BOME tokens for $2.3 million on the Raydium Decentralized Exchange (DEX) at an average price of $0.0074. After the listing, the value of the tokens rose to a maximum of $0.026, bringing the value of the tokens to around $8 million.
After the listing, the deal was flagged, sparking discussion in the community, with some claiming it was an insider deal. On Reddit, one community member asked if they thought it was a lucky transaction or a clue from within, while another expressed speculation that the trader could be a person affiliated with Binance.
In a statement on X, Binance said it has launched an investigation into allegations of insider trading related to the BOME listing. Binance said that during the initial investigation, the person at the center of the allegations had “no connection to Binance.”
Binance also urged the community to continue reporting any potential cases of insider trading or other irregularities related to the exchange.
The trading platform said it will offer a reward of between $100,000 and $5 million to those who send them relevant reports and promised to keep the identity of the reporter confidential.
The exchange said it would thoroughly investigate and publish its findings. Binance also said it wants to maintain a transparent trading environment and prevent any behavior that could affect market fairness.
While some made astronomical profits during Solan‘s memecoin frenzy, not everyone was lucky. on March 15, a trader who bought BOME very early lost potentially millions in profits after selling his tokens the day before the token’s price surged.
The trader sold 170 million tokens for $131,000 before the token price rose further. At current market prices, the tokens would be worth $2.3 million.
