Binance Investigates Insider Trading Allegations Surrounding BOME

Binance started a detailed probe into claims about the BOME, a meme coin built on Solana. These claims arose from the “BOME rat warehouse” event after community talks and worries over possible insider trading. After that, the exchange quickly acted by kicking off an internal investigation.

Binance Looks Into the BOME Rat Warehouse Situation

In an official statement on X (formerly Twitter), Binance emphasized its commitment to transparency and fairness in the crypto market. The exchange said, “We take this information very seriously and immediately launched an internal investigation based on relevant leads.” An investigation aimed to determine if any Binance personnel were involved in reported insider trading following allegations of BOME insider trading.

📢关于“#BOME 老鼠仓”相关信息的调查结果公示

近期，我们注意到社区中关于所谓币安“BOME老鼠仓”事件的讨论。我们非常重视这一信息，并根据相关线索立即启动了内部调查。根据我们初步的调查结果，相关信息中所提及的人员与币安无关。…

— 币安Binance华语｜Web3钱包已上线 (@binancezh) March 18, 2024

As per Binances’ first investigation outcome, the individual involved in the event is not related to the exchange. Those users and investors have now begun to be assured that Binance still operates honestly.

Binance has also sent messages to anyone who knows of any wrongdoing, including but not restricted to internal trading or monetary corruption related to currency listings, to come forward. The exchange has further promised to keep the whistleblowers’ anonymity by paying prize money for verified leaks from $100.000 to $5 million.

Binance claims to keep the public informed in case of any progress resulting from the investigation. The review underlined the company’s commitment to carrying out detailed reviews into the accusations of wrongdoing in the BOME insider trading case. It remains very responsive to feedback from its user community.

Binance Lists BOME: Speculation Sparks Surge

Binance announced its plans to list and open specific spot trading pairs for BOME on March 16 at 12:30 UTC. The opening trading pairs are BOME/BTC, BOME/USDT, BOME/FDUSD, and BOME/TRY. Binance listed the token with 0 BNB, which shows that Binance fully supports the token.

BOME on Binance received great attention from the crypto audience mainly due to the platform’s history of impacting the price of tokens. The platform also rolled out the USDS-M BOME perpetual contract on Binance Futures with a maximum leverage of 50x.

These announcements coincided with a 200% surge in the BOME price. Subsequently, with the announcement of Binance’s listing, BOME’s price experienced a staggering 320% rally, garnering global attention.

Moreover, past listing events on Binance, such as RONIN and BLUR, had demonstrated considerable volatility in token prices post-listing. RONIN saw a significant decline following its listing, while BLUR experienced a remarkable surge. These events sparked speculation about the potential price action of BOME following its listing on the Exchange.

Furthermore, a single trader’s accumulation of 314 million BOME has fueled speculation, as they have yet to sell any of their holdings. This substantial accumulation, coupled with the absence of sell-offs, has led to speculation about further price increases, with suggestions of potential insider knowledge influencing the trader’s actions.

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