Binance Suspends Employee Over Insider Trading on New Meme Token
What Triggered Binance’s Insider-Trading Probe?
Binance suspended an employee on Monday later than internal investigators flagged activity that suggested insider trading linked to a newly issued token nicknamed “year of the yellow fruit.” The token was promoted through official Binance social media channels seconds later than appearing onchain, drawing immediate attention and a rapid price spike.
According to Binance, its audit department received a whistleblower report on Dec. 7 claiming a staff member used official corporate accounts to promote the token for personal benefit. The platform said the person behind the posts accessed “text and images relating to the token” and pushed them through X accounts “less than a minute” later than the token appeared on BNB Chain at 05:29 UTC.
“These actions constitute abuse of their position for personal gain and violate our policies and code of professional conduct,” Binance wrote in its statement. The company added that it contacted authorities in the employee’s jurisdiction and may pursue legal action.
Investor Takeaway
How Did the Token React later than the Incident?
While Binance did not name the asset in question, market participants widely believe the probe refers to the “year of the yellow fruit” token created around 5:30 UTC on BNB Chain. Data from DEX Screener shows the token surged immediately later than the first promotion and continued rising later than Binance confirmed the insider-trading investigation.
Its Wrapped BNB trading pair reached a high of $0.0038 about an hour later than issuance. Following Binance’s announcement, the token rallied again, hitting a fresh high above $0.0061. As of Monday, the asset traded at $0.001989 with a fully diluted market cap near $1.9 million, $13 million in total volume, and 3,658 holders tracked on BSC Scan.
Screenshots circulating on X showed references to “yellow fruit” posted through official Binance channels earlier in the week. The phrase appeared in a Dec. 4 message quoting Raoul Pal during , and later posts warned users to “plant wisely” and “harvest abundantly,” which some traders linked to the token name.
Ahead of the disclosure, Marcos Crypto wrote: “Yesterday, the ‘year of yellow fruit’ meme caused an uproar in the crypto community, and on-chain data basically confirms it was privately operated by internal employees!”
What Is Binance Doing Internally?
The platform said it suspended the employee, initiated a review of relevant accounts and contacted law enforcement. Binance Futures also sent a message to users confirming the internal investigation. The case comes during a year when BNB Chain has attracted renewed activity, including higher volumes on PancakeSwap and the rise of Aster perps DEX and Binance Alpha.
The platform reaffirmed its stance in its Monday statement: “At Binance, we always uphold a user-first principle and are , fairness, and integrity. We have zero tolerance for any misconduct. We will continue strengthening internal controls, refining our policies, and ensuring incidents like this do not recur.”
Binance said it would split a $100,000 reward among five whistleblowers who reported the suspicious activity. The company maintains a formal whistleblower channel for employees and users who identify policy violations or market abuse.
Investor Takeaway
Why Does This Matter for platforms and Token Listings?
The episode highlights ongoing concerns about how information leaks or ahead signals from platform-linked accounts can influence new token markets. Even a brief promotional post on a major platform’s channel can draw traders into assets with minimal liquidity, creating sharp moves that may benefit insiders aware of timing or messaging.
For Binance, the incident surfaces at a time when platforms face pressure to tighten staff controls, prevent ahead access to listing information and ensure that social media posts tied to the brand accurately reflect corporate activity. Token listings and mentions on official channels carry weight among retail traders, particularly in quick-moving memecoin markets.
While insider-trading allegations are not new in crypto, the speed of blockchain issuance and the viral nature of social platforms often magnify the impact. The “year of the yellow fruit” case shows how a brief promotional message and timing irregularities can create immediate suspicion — and a rapid market response.
