Who was front-running Binance users?
On Jan. 26, a Medium article revealed that an entity with control over multiple Ethereum addresses had consistently purchased cryptocurrencies prior to their listing on Binance, selling them for a million-dollar profit after the event.
The article refers to 16 cases from an on-chain analysis perspective, demonstrating how the mysterious entity was aware of Binance listings several days in advance, and how it was unlikely to be carried out by someone with little experience in concealing its tracks.
Surprisingly, Binance founder Changpeng “CZ” Zhao issued a statement on the subject two months later, only after the article gained traction on Twitter. CZ claims that the exchange “froze $2 million associated with the address in question” but does not say whether Binance employees were involved.
Traders are now demanding an investigation into the illegal use of insider information in these multiple “front-run” instances. However, the burden of proving illegal access to privileged information may prove difficult for prosecutors.
On-chain data reveals the covert operations of a Binance listings insider. Over the course of several months, this anonymous individual front-ran the infamous Binance listing pumps of multiple altcoins, booking a 7-figure profit. And he left a trail for us to follow... (1/9)
At first glance, the accusations about front-running Binance listings appear to be reasonable. However, the on-chain data and numerous instances of “sheer luck” in purchasing cryptocurrencies on decentralized exchanges (DEX) prior to their listing on Binance may not constitute a crime.
A securities instrument is a financial asset that can be bought or sold on regulated exchanges, representing ownership or debt from a publicly traded
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