Binance Announces They Strictly Maintain Confidential Information

Due to the collapse of the American exchange FTX, many other cryptocurrency platforms also suffered from distrust in their direction. Binance said it has a very negative attitude towards those who can trade insider information.

According to representatives of the largest exchange, they make sure that confidential information remains where it is needed and does not go beyond. If such moments are discovered, the management will not stand on ceremony with its employees and will severely punish them, leaving them without the opportunity to work on the largest cryptocurrency exchange.

According to the media, Binance is blocking the accounts of its employees for 3 months so that they cannot trade on the exchange. Well-known Chinese journalist Colin Wu shared his opinion on his Twitter account regarding such a punishment.

According to him, this is a good moment, since the employees of the exchange, having the necessary information, can engage in insider trading. If Binance is not cheating, then they are absolutely intolerant of this type of activity. Account blocking is given not only to employee accounts, but also to their family members for obvious reasons.

It is noteworthy that Binance top managers report on their actions and the actions of their wards every quarter, which enhances the safety factor and stops illegal trading.

In addition, there are other points in Binance that do not allow employees to engage in insider trading. The company has a special investigative unit that looks for traces of insider trading. In the case of finding such a nature in the trade of employees, the latter are held accountable for their deeds.

They say that the minimum that can be done with such employees is to fire them. In some cases, the case may reach the initiation of a criminal case. For this reason, Binance employees are not motivated to use their channels for dishonest earnings.

Previously, the term for blocking employee accounts was 3 times less and amounted to 30 days. For what reason Binance decided to strengthen preventive measures was not reported. Last June, the US Securities and Exchange Commission (SEC) also became interested in the issue of insider trading and began to study this point in more detail. Binance has been suspected of such cases since the SEC noticed a connection between Binance.US and two trading firms, Sigma Chain and Merit Peak, in February. In their opinion, the employees of the exchange could use the services of the above-mentioned organizations.