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Binance Initiates a $5 Million Bounty to Combat Insider Corruption Amid the Token Listing Controversy

Binance makes a decisive move against corruption

Binance, a leading crypto exchange, has announced a bounty program with rewards ranging from $10,000 to $5 million. This initiative seeks information that could confirm corrupt practices among its employees. The move comes in the wake of intense community debates triggered by the volatile price movement of the Ronin (RON) token following its listing on Binance. 

Co-founder Yi He revealed the bounty in a series of posts on Feb. 5, emphasizing the exchange's commitment to integrity and transparency within the cryptocurrency trading sphere.

The Ronin token controversy and community backlash

The listing of the Ronin (RON) token on Binance quickly became a focal point for controversy. Prior to the announcement, RON experienced a surge of over 30%, as per CoinGecko data, igniting speculation of insider trading. However, the price plummeted by 18% within an hour after the listing went public, leading to a 26% decline over the day. Community members on social platforms speculated a leak from Binance as the culprit, prompting a heated debate. 

Yi He addressed these concerns, stating: 

"heated discussions had taken place in the community after a recent plunge in the price of Ronin (RON) after it listed on Binance." 

This incident, coupled with previous allegations by Coinbase director Conor Grogan of potential front-running activities, has cast a shadow over Binance's listing practices, highlighting the need for stringent measures.

Binance's response and security overhaul

In response to the turmoil and to fortify its token listing process, Binance is implementing sweeping reforms. Yi He announced an overhaul aimed at preventing insider abuses, stating:

"Binance will overhaul its token listing process, including up to a $5 million bounty for verified information on corrupt staff — beating the potential gains from the 'rat warehouse.’" 

The exchange is introducing stricter controls for team members involved in token listings. Offenders leaking information about upcoming projects will face severe repercussions, ranging from warnings to termination.

Binance is taking a stand against corruption by offering a bounty of $10,000 to $5 million for information leading to the identification of corrupt practices within its operations.Projects associated with staff members found guilty of corruption will be blacklisted, demonstrating the exchange's zero-tolerance policy. Yi He emphasized the importance of trust, urging projects to conduct background checks with Binance to ensure the integrity of their collaborations.