It's finally the turn of Web3 manufacturer to eliminate corruption

Author: flowie, ChainCatcher

Web3 major manufacturers have finally begun to officially "removal of corruption".

This morning, Binance informed employees that they used their old positions to conduct insider trading and make profits. The person involved has been suspended and may even face legal accountability. Binance was revealed to be internal corruption, but this should be the first time that Binance has disclosed the details of internal transactions to "removal of corruption".

After Binance took the lead in punishing employees' insider trading issues, exchanges such as Huobi also said they would follow suit. But compared with the normalization of "removal of corruption" by Web2 giants, the "removal of corruption" of Web3 major manufacturers has just begun.

With the details of insider trading, is the " ****removal of

corruption "**** in the currency circle officially launched?

Judging from the Binance announcement, this time the removal of corruption came from a report two days ago.

The employee involved in this time was in the recently popular Binance Wallet team. The employee had held a business development position at BNB Chain. Using the information obtained from his previous position, he purchased tokens for a project in advance, and then quickly sold it after the project announcement was released, making a lot of profits.

In response, Binance's handling result was to suspend the employee and even hold him legally accountable. The four "whistleblowers" reported this time were also rewarded with $100,000. Binance also provides the community with official reporting channels.

However, Binance's insider trading in employees may have been publicly exposed by multiple Twitter users before the official report was received.

@pycharts and @BroLeonAus both shared on-chain evidence, pointing out that Binance Wallet BD and growth employee Freddie Ng participated in $UUU's rat-handling behavior.

@BroLeonAus also sorted out the specific crime. He said that Freddie Ng should have known in advance $UUU to pull the market. He spent 10 BNBs with his small address and bought $UUU worth 31.2 W after opening at a low level, and then transferred all into the laundering wallet and sold it at a high level through Bitget wallet. The first profit was 1.81.4 $BNB, worth 110,000 yuan.

In addition, Freddie Ng also distributed the remaining $UUU to 8 different addresses, each with a range of tens of thousands of dollars. The community user discovered that the employee bought the wallet in rat warehouses using the wallet with real name 121 days ago freddieng.bn.

It is not new that employees of exchanges such as Binance were exposed to insider trading using their positions. Every supervision and reporting by the public in the community has forced Binance to begin to strengthen its efforts to eliminate corruption.

In February last year, RON's sharp drop in Binance also caused everyone to question the rat trading position. Although Binance responded that it was a mistake, it also used this to officially publicly declare that it would pay attention to corruption.

The specific anti-corruption measures mentioned by Binance also have three main points: strengthening the management of currency listing groups and fire prevention isolation; canceling currency listing for project currency listing information leakage; and offering rewards to whistleblowers to encourage public supervision.

At the beginning of this year, another author named Qwertyuioopasdfghj on Medium published a public report letter, pointing out that Binance Labs (now renamed YZi Labs) is suspected of major "internal corruption". The report letter mentioned that multiple senior executives of Binance Labs and the invested project parties colluded to transfer interests.

Although Binance also conducted public investigation and public announcement of the results of this report, it was later mentioned after Binance Labs was renamed Yzi labs.

Labs' employee information is public. We welcome evidence to provide evidence and can report it directly to Zhao Changpeng and He Yi.

He Yi also mentioned at Space at the beginning of the year that Binance has conducted more than 120 internal audits in the past two years, dismissed more than 60 employees who violated the rules and recovered more than 30 million US dollars in illegal gains.

However, Binance has not disclosed the details of corruption in the past. Recently, it is targeting the insider trading details of Binance Wallet's employees, or a signal of Binance's elimination of corruption. Under the pressure of wealth effect failure and compliance, open removal of corruption may also be one of the best ways for leading exchanges such as Binance to gain community trust.

The ****Web2 giant has been "removing corruption" for more than

ten years. What can I learn from?****

Corruption has always been a difficult disease of large companies to eradicate. But compared with the Web3 major companies, traditional Web2 giants have basically become normalized after more than ten years of launching the anti-corruption campaign.

Since Alibaba established the group's "Integrity and Compliance Department" in 2012, it has begun to promote internal corruption removal. Since then, other Internet giants have followed up and started formal corruption removal work. Internet giants have some common methods of eliminating corruption:

In terms of supervision, for example, establishing a special corruption investigation department, establishing an internal reporting mechanism , and most of them will regularly publish anti-fraud notices .

JD.com has established a special fund for corruption elimination of RMB 10 million per year to reward individuals and units for reporting violations. Recently, ByteDance announced the 2024 company fraud results report, carefully presenting the number of illegal employees dismissed and transferred to judicial authorities for handling; types of violations and key areas involved, such as corruption focused on corruption in the procurement process, monetization of technical powers and embezzlement of positions, and information black market transactions.

Internet companies will also introduce joint actions and blacklisting systems . For example, the Sunshine Integrity Alliance, which has been jointly initiated by Tencent, Baidu, Meituan, JD.com, has nearly 800 companies participating, uploading and sharing the list of dishonest employees.

In addition, Internet companies use big data and artificial intelligence and other technical means to conduct real-time monitoring and analysis of internal operations, and promptly detect and deal with fraud. For example, ByteDance has established a dedicated database, where supervisors can retrieve data from it, and the system will automatically identify risks and push them to the business manager.

In addition to supervision, Internet companies will also conduct internal training to inform employees of compliance awareness .

Compared with the Web2 field, Web3 exchanges led by Binance and others involve financial transactions, making it easier for internal employees to have the motivation and means to engage in corruption. Web3 manufacturers do need to take the lead in normalizing and systematicizing "corruption elimination".