Binance Takes Action Against Misconduct and Market Irregularities
Binance recently cracked down on internal misconduct and market irregularities related to the Movement’s MOVE token. The exchange suspended a staff member for insider trading and penalized a market maker engaged in manipulative trading practices.
Insider Trading
On March 25, Binance Wallet confirmed the suspension of an employee involved in front-running trades using privileged information. This individual, who previously held a business development role at BNB Chain, had access to sensitive details, such as upcoming token launches.
- The employee was aware of a project preparing for its Token Generation Event (TGE).
- Using this information, the person purchased a large amount of tokens through several wallet addresses.
- After the launch, they sold some tokens to make early profits while retaining a significant amount with unrealized gains.
Binance responded by suspending the employee and initiating a formal disciplinary process. The exchange also expressed its willingness to collaborate with authorities for potential legal action. Additionally, Binance reiterated its zero-tolerance policy towards misconduct and announced enhanced internal controls and policies to prevent similar incidents in the future.
Binance encouraged users to report unethical behavior through its whistleblower portal. As part of this initiative, the company plans to reward four whistleblowers with $100,000 each for providing valid reports on the case.
Market Manipulation
Binance uncovered irregular trading activity involving an undisclosed market maker connected to the MOVE token. This entity, now banned, dumped approximately 66 million MOVE tokens on Dec. 10, 2024—just a day after the token’s launch—while placing minimal or no buy orders.
- The account, removed from the platform on March 18, 2025, reportedly generated around $38 million in profit.
- Binance froze the earnings and prohibited the market maker from future activities.
After notifying Movement Labs and the Movement Foundation, both unaware of the misconduct, the project severed ties with the involved party and pledged to compensate affected users. The Movement Network intends to repurchase MOVE tokens worth $38 million, using the already recovered funds. The buyback process will take place over the next three months on Binance, with repurchased tokens transferred to the Movement Strategic Reserve.
