Binance has suspended an employee after an internal review found the individual used one of the exchange’s official X accounts to promote a newly issued token. The post, later deleted, featured an image tied to a BNB Chain token called “Year of Yellow Fruit.” On-chain timestamps show the token creation and social post occurred within minutes of each other. The exchange said the employee misused insider information for personal gain. Binance initiated a formal probe after receiving a tip on December 7, suspended the staff member, and notified relevant authorities. The company pledged full cooperation as disciplinary and possible legal action proceed. Investigation of Employee Misconduct IncidentOn December 7, 2025, Binance’s internal audit department received a report alleging that a Binance employee had used insider information to post on official social media and improperly obtain personal gain. We immediately launched an…— Binance Futures (@BinanceFutures) December 8, 2025 On-chain records show the token was created on BNB Chain at 13:29 UTC+8, while the Binance Futures account posted the image at 13:30. Observers flagged the timing and imagery, and the token briefly surged to $3.6 million before collapsing by about 80 percent. Source: Dexscreener Binance confirmed that the post and token issuance were connected, calling the act an abuse of position and a violation of its code of professional conduct. Memecoin pump-and-dump patterns: when hype meets concentrated supply The Binance employee incident stunned the crypto community, but it’s far from an isolated case. The memecoin market has long been shaped by social hype, signals from prominent accounts, and a handful of wallets holding massive token amounts. These factors often allow a small group to drive prices up rapidly, leaving everyday investors exposed to sudden crashes. A clear example came during the 2025 BNB-Chain memecoin wave. Tokens like Binance Life (BNL), for example. The token launched on BNB Chain in early October 2025 and surged more than 1,800% in just a few days. Rumors suggested subtle endorsements from Binance co-founders, and a handful of wallets reportedly controlled 70% of the supply. That concentration allowed a rapid surge to a $350 million market cap before the price plunged 85% in less than two days. By December 9, 2025, BNL trades at $0.117, with most of its earlier liquidity vanished, possibly rug-pulled. Another notable case is PALU, a panda-themed memecoin that hit BNB Chain in mid-October 2025. On October 21, the token spiked 60% in an hour to $37 million, following hints that Binance executives had signaled support. Insider-linked wallets held the majority of the supply, driving the pump, but it subsequently fell by 75% within 24 hours. Source: Dexscreener Today, PALU sits below $0.00007, nearly forgotten on DEX charts. Also, the “4” token, tied to an executive’s “four essentials” reference, rose 470% in early October but lost 90% of its value in hours. Currently, it is trading around $0.025 with little activity. Uncertainty and instability that this kind of manipulation can create: Sudden price swings catch everyday traders off guard and can quickly turn small bets into painful losses. Trust in exchanges weakens when official accounts are used in ways that mislead the public. Regulators step in faster, slowing new products and limiting customer access. Exchanges and staff face real exposure to fines, lawsuits, and even criminal charges. Insiders profit from information the public never had, leaving ordinary investors with the losses. Binance to compensate whistleblowers and reinforce its zero-tolerance policy Binance said it has verified all audit-channel reports and will award a $100,000 bounty to be shared evenly among the five earliest whistleblowers who submitted valid tips through its official reporting channel. The exchange reaffirmed its zero-tolerance policy and said it is tightening internal controls to prevent similar abuses. Binance also urged users to report concerns through official channels and noted that the investigation remains active in coordination with authorities.
Binance Employee Suspended for Using Official X Account to Pump Token
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