The Binance-Wing Book Team said on Tuesday in a post of X that it has suspended an employee accused of having used confidential information from their previous roles in the BNB chain for front driving a token launch.

The employee allegedly bought coins via several wallets in front of a token -generation event (TGE), which later sold part of the holdings for quick profits.

“This behavior constitutes front driving based on non-public information obtained from his previous role and is a clear violation of the company’s policy,” reads a statement from the wallet team.

Binance’s study found no evidence that the employees of the wallet team were involved in insider trading. The company said the information they used was based on data obtained while in the BNB chain not on the drawing team.

Binance said it will cooperate with relevant authorities to pursue appropriate litigation.

Binance’s suspension of this wallet staff repeats Coinbases 2023 scandal, involving former manager Ishan Wahi, who admitted to the tucking token-listing details with his brother and another contact.

Coinbase eventually became involved in the case to contest securities and the exchange commission’s charges that the tokens wahi inside was trading on were securities.