Binance, the world’s largest cryptocurrency exchange, has issued a statement addressing concerns about a “large BOME transaction.” The single transaction raised suspicions of potential insider trading.
The transaction in question involved the newly listed meme coin, Book of Meme (BOME). Binance has clarified that the transaction is unrelated to its staff and has launched an internal investigation to ensure transparency.
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The exchange’s statement comes in response to a report by on-chain data firm Lookonchain. The firm highlighted a significant withdrawal of 12,721 SOL, worth approximately $2.3 million, from Binance.
The withdrawn funds were then used to purchase 314 million BOME at a price of $0.0074, as per data from Solscan. Lookonchain’s post on X raised the question, “Does He know something we don’t?”, sparking concerns about potential insider knowledge.
Binance denies staff involvement in BOME transaction
In its official statement, Binance emphasized that, upon receiving information about the large BOME transaction, the exchange immediately initiated an internal investigation. The results of the investigation revealed that the user involved in the transaction is not a member of Binance’s staff.
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Binance further stressed that transparency is a top priority for the exchange, and its investigations team will continue to thoroughly examine the case.
As part of its efforts to combat fraudulent behavior, Binance is currently offering a substantial reward ranging from $100,000 to $5 million to users who report fact-listing-related or other fraudulent activities. The exchange encourages users to reach out via a designated email address to report any incidents.
The concerns surrounding the large BOME transaction coincide with the meme coin’s recent listing on Binance. On Saturday, the exchange added several BOME trading pairs, including BOME/BTC, BOME/USDT, BOME/FDUSD, and BOME/TRY.
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Following the listing, the price of BOME has experienced a remarkable surge, skyrocketing over 1500% on the exchange.
The significant price increase and the timing of the large BOME transaction have raised eyebrows within the cryptocurrency community. However, Binance’s swift response aims to address these concerns and maintain the integrity of its platform.