Binance Initiates Internal Probe After Reports of BOME Insider Trading

Binance Internal Investigation on BOME Meme Coin

Binance has launched an internal investigation in response to growing concerns and community discussions surrounding potential insider trading linked to Book of Meme (BOME), a meme coin operating on the Solana blockchain.

Official Statement by Binance

On Monday, Binance released an official statement on the X platform, announcing the initiation of an internal inquiry into the matter. The exchange stated, “Recently, we have noticed discussions in the community about the so-called Binance ‘BOME rat warehouse’ incident. We take this information very seriously and immediately launched an internal investigation based on relevant leads.”

Preliminary Findings

The preliminary findings of Binance’s internal investigation have indicated no connection between the individual under scrutiny and the exchange. Binance has encouraged individuals with information regarding any misconduct, including insider trading or corruption related to currency listings, to come forward.

Rewards for Information

Binance has pledged rewards ranging from $100,000 to $5 million for verified reports of wrongdoing, ensuring the anonymity of whistleblowers. The exchange stated, “If you have any reports involving currency listing and other corruption, or if we verify that Binance team members are corrupt, we will provide you with a reward of US$100,000 to US$5 million while keeping your identity confidential.”

Recent Developments

These developments come after Binance’s announcement of listing plans for BOME on its platform, introducing spot trading pairs such as BOME/BTC, BOME/USDT, BOME/FDUSD, and BOME/TRY, effective from March 16 at 12:30 UTC.

Following the listing announcement, the value of BOME surged significantly, reaching $0.02703, a 345% increase, with its trading volume rising by 262% to $3.8 billion.

Insider Trading Cases in Crypto

In a notable insider trading case last year, a former Coinbase product manager was sentenced to two years in prison for providing confidential information about upcoming crypto listings to make profitable trades.

In another case, Nathaniel Chastain, former Head of Product at OpenSea, faced charges of wire fraud and money laundering in connection with insider trading in NFTs.