A possible case of “insider trading” involving brokerage Binance came to light on Wednesday (18). Ten minutes before the brokerage announced the listing of the Rocket Pool (RPL) token, someone had bought thousands of cryptocurrency tokens and resold them on the brokerage a few minutes after the announcement, when the price of the product had gone up, thus making a huge profit in the process.
Insider trading, or privileged information, is the expression in English when a person has access to information that the rest of the public does not have, and uses this data to get profits from investments. It is a crime, established by law, that leads to an imbalance in the market.
The case was exposed by journalist Colin Wu on your Twitter profile. According to him, a wallet with an anonymous address bought 6193.46 RPL tokens ten minutes before List of ads today by Binance. Shortly after confirming the cryptocurrency on the trading platform, he sold the entire amount and made a profit of $55,400 in the transaction.
The pairs used for trading were the stablecoin USDT and Ethereum (ETH) and were purchased on the OKX exchange.
The anonymous wallet address (0x5f…47db) bought 6193.46 RPL 10 minutes before Binance made the RPL listing announcement, and sold it all 10 minutes after the announcement, making a profit of $55,400. Both USDT and ETH are used by OKX. https://t.co/xtrxxQx9BS
WuBlockchain January 18, 2023
Binance was announced through its official website in a text posted at exactly 22:00 on Tuesday (17), according to Brasilia time (1:00 UTC, the official time used by the company).
The company stated that it will list Rocket Pool (RPL) in the platform area called Innovation Zone and that it will be available for trading at 5 am on Wednesday (18). The available trading pairs are Bitcoin, BUSD (Binance stablecoin), and USDT. Withdrawals will be enabled in RPL only at 5am on Thursday (19th).
When contacted, Binance sent a long note not specifically mentioning the case, but stressing that “security is a priority and it works in full cooperation with authorities to prevent malicious people from using the platform.”
In addition, he confirmed that it has “a world-renowned investigation team, with former clients working in continuous coordination with local and international authorities in combating cyber and financial crimes, including the preventive tracking of suspicious accounts and fraudulent activities.”
Rocket pool
In the listing announcement, Binance Rocket Pool identifies as a decentralized provider of Ethereum derivatives. The platform protocol connects network validators and providers to create an ETH Staking pool.
The user is rewarded in Rocket Pool ETH (rETH) for maintaining the liquidity of the system. RPL is the governance token and is required to become the trigger of a node.
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