In an unusual move, Binance co-founder Yi He took to social media this week to directly warn the exchange’s employees in the wake of volatile trading activity surrounding the Ronin token. Her message, delivered in Mandarin on an X post dated February 6, was clear and uncompromising: any leak of information regarding upcoming listings would result in immediate disciplinary actions, starting with a warning and escalating to termination of employment.
This stark warning came against the backdrop of a significant price surge and subsequent plunge in the value of Ronin’s RON token. The token experienced a 17% increase over 24 hours starting February 4, only to drop by 25% following its listing on Binance. The dramatic fluctuations hinted at the possibility of insider knowledge regarding the pending listing, a suspicion Yi He herself appeared to share. In her communication, she stressed that any listing could be canceled should there be signs of leaked information, urging employees to report any such incidents.
Further emphasizing the gravity of the situation, Yi He announced incentives for whistleblowers, offering a “security vulnerability bonus” ranging from US$10,000 to US$5 million for proof of corruption within the Binance team, promising confidentiality for those who come forward.
The choice of social media as the platform for such a warning is unconventional, deviating from the norm of internal company communication. However, given Binance’s recent legal challenges, including a hefty $4.3 billion penalty for violating US banking laws and the ongoing scrutiny under which the exchange finds itself, such a public stance might be seen as a strategic move. The exchange is currently under obligation to work with an independent monitor to oversee its compliance with anti-money laundering regulations.
Yi He‘s statement also contained a message to major funds, inviting them to conduct background checks with Binance prior to making offers, signaling a commitment to transparency and regulatory compliance.
The heightened visibility of Yi He, who also heads Binance‘s customer service and its venture arm, Binance Labs, marks a significant moment for the exchange. It underscores the serious tone Binance is adopting in the wake of its legal issues and the sentencing of its co-founder and former CEO, Changpeng Zhao (CZ), scheduled for February 23 in the US.
