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Conor Grogan, Director of Coinbase, has uncovered a pattern allegedly run by leading cryptocurrency exchange Binance. In a series of tweetsGrogan shared evidence of a connected wallet that bought large amounts of various cryptocurrencies, including Rari, ERN, and TORN, seconds before their listing on Binance and dumped them minutes later.
According to Grogan, this connected wallet bought $900,000 worth of Rari seconds before listing and sold it minutes later. Similarly, they bought around 78,000 ERN between June 17 and June 21 and sold them immediately after the listing announcement. The same pattern is observed with TORN.
Previously as reported by TronWeekly, the mysterious wallet address made a staggering profit of $55.4K in just 20 minutes by making a wise move to buy 6193.46 RPL tokens before Binance announced their listing and flipped it right after that.
The individual or group behind the transaction successfully took advantage of the listing announcement and made a quick profit. This is not the first instance of such a transaction. Grogan mentions a number of incidents like this in his Twitter thread.
This act, known as front-running, is considered unethical and illegal in traditional financial markets. However, the lack of regulation in the cryptocurrency space has allowed such practices to continue.
Binance & Unethical Series List
Grogan also pointed out that regulators and law enforcement have recently cracked down heavily on CEX insider trading. If front-running occurs, it may be the result of an insider MNPI, most likely from a rogue employee associated with the listings team who will be privy to future asset announcements or traders discovering APIs or staging/exchange leak testing.
Additionally, Grogan also shared another suspicious transaction involving buying $500K+ worth of RAMP over a period of several days and sending it to Binance minutes after the listing announcement; assuming they sell it, that’s a ~100K salary.
He also highlighted that Binance might be able to easily track down the person via deposit address and share the 6th suspicious transaction he found.
This news has sent shockwaves through the crypto community, raising questions about the integrity of Binance and calling for stricter regulations to prevent such practices.
The revelation also brought to light the fact that the directly linked wallet is still doing the same thing months later. This evolving story is sure to have ripple effects across the industry, and it remains to be seen how that plays out.
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