An anonymous trader made over $100,000 by purchasing a little-known token a couple of hours before it was listed on Binance.
An unknown trader with blockchain address 0xaa…06e6 bought the gains network (GNS) token a couple of hours before its listing on Binance and earned about $106,000. This was announced on his Twitter page reported Lookonchain analysts.
According to the published data, an unknown trader was actively buying GNS tokens for a total of $208,335. However, immediately after the listing of the token on Binance, the price of the altcoin jumped by almost 70%. Trader sold 26,881 GNS worth $315,082. Address transaction history in PolygonScan explorer showsthat the address began to actively buy GNS back in January, however, about the listing on Binance became known February 17 only.
Moreover, the address did not buy any other tokens at all, but focused solely on GNS. Users already assumedthat so much focused buying of tokens is the result of insider trading. However, it is not clear who exactly could blabbed about the listing of the token on the exchange.
backroom trading
This is not the first time Binance users have noticed signs of insider trading on the platform. In May 2022, an unknown person bought $360,000 worth of gnosis (GNO) tokens. A couple of days later, when Binance announced the listing, it increased in price by more than seven times. Just four minutes after the announcement, the address got rid of all purchased coins. In the scheme, an anonymous investor made $500,000, making a profit of about $140,000.
Employees of the American crypto-exchange Coinbase were previously convicted of insider trading. Last summer, the US Department of Justice accused former Coinbase crypto exchange product manager Ishan Wahi of insider trading. Representatives of the regulator said that Ishan Wahi and his accomplices earned $1.5 million from insider trading. In February 2023, Wahi acknowledged yourself guilty. The verdict to the accused will be announced on May 10, 2023. Wahi faces up to 40 years in prison.
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