Binance said that it has begun looking into insider trading claims connected to BOME’s listing.
The exchange asked the community to keep reporting any possible insider trading.
Binance has introduced a reward that may pay out between $100,000 and $5 million to anybody who comes forward with information on possible corruption or insider trading on the platform.
Book of Meme (BOME), a meme coin based on Solana, was revealed to be listed on Binance on March 16. This token was paired with many cryptocurrencies, including Bitcoin, the Turkish lira, Tether USDT, and First Digital USD (FDUSD). Also, a USDS-M BOME perpetual contract with leverage of up to 50x will be listed by Binance Futures, as per the announcement.
On the Raydium DEX, a crypto whale spent $2.3 million to buy 314,000,000 BOME tokens. This was at an average price of $0.0074, just before the Binance listing. Token value reached a high of $0.026 after listing, valuing the tokens at around $8 million.
The transaction was noticed after the listing, which sparked community comments. Some people claimed that this trade was an insider trade. Someone in the Reddit community wondered if the trader was fortunate or had some kind of inside information, while another person suggested that the trader may be a Binance insider.
Investigation Underway
Binance said on X that it has begun looking into insider trading claims connected to BOME’s listing on the exchange. According to Binance, the individual implicated in the claims had “no connection with Binance” throughout the first stages of their inquiry.
Additionally, Binance asked the community to keep reporting any possible insider trading or other exchange-related wrongdoing. In exchange for anonymous reports, the exchange has pledged to pay out rewards ranging from $100,000 to $5 million.