Investigative journalist uncovers alleged insider trading in Binance’s new listing


  • Colin Wu, a Chinese journalist, told his 231,500 followers about possible insider trading in OSMO, a new cryptocurrency listed by Binance. 
  • The exchange said that it is conducting an investigation involving the address that bought 2,029,846 tokens purchased at $1.34. 
  • Osmosis (OSMO) has yielded holders 23.6% gains overnight. 

Binance, the world’s largest cryptocurrency exchange by volume listed Osmosis (OSMO) in the innovation zone on October 28. A day before OSMO’s listing on Binance, a wallet address scooped up more than 2 million OSMO tokens at $1.34. Binance is currently investigating alleged insider trading. 

This wallet address is accused of insider trading by investigative journalist Wu

Chinese journalist Colin Wu told his 231,500 followers in a recent tweet that ahead of Osmosis (OSMO) listing on Binance, a wallet address accumulated upwards of 2 million OSMO tokens at $1.34. 

Colin Wu told his followers that the following address scooped up OSMO before its Binance listing announcement, osmo19muml8sjpnecnm8geul4l3zfju24l04mpuppy7. This address made a purchase of 2,029,846 OSMO. Wu said that Binance is investigating the alleged insider trading incident and there are no further updates. 

Typically, after a new token’s listing on Binance there is a spike in demand for the asset. The listing is accompanied by a rally in the token’s price, similar to the Coinbase effect. After the listing announcement, Osmosis (OSMO) has yielded nearly 25% gains for holders. 

According to the announcement on the Binance blog, the exchange opened trading for the following spot trading pairs: OSMO/BTC, OSMO/BUSD and OSMO/USDT. 

Binance CEO Changpeng Zhao told Fortune in an interview in May 2022 that the exchange has “a zero-tolerance policy” on insider trading. Zhao told users to email evidence of anything suspicious to [email protected], a whistleblower email address.

Zhao told users in a tweet that the exchange tries not to let project teams know when the token will be listed on Binance. The Binance CEO shared this information in response to a research report by compliance software producer Argus, which highlighted how 46 crypto wallets had purchased specific cryptocurrencies in the week before those coins listed on major exchanges, like Coinbase and Binance. The price of the tokens would rise after a listing, and the wallets made a tidy profit on their holdings. 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Ripple's XRP breaks out of downtrend as RLUSD receives greenlight from New York regulators

Ripple's XRP breaks out of downtrend as RLUSD receives greenlight from New York regulators

Ripple's CEO Brad Garlinghouse announced on Tuesday that the company received a green light from the New York Department of Financial Services on the launch of its stablecoin RLUSD. 

More Ripple News
Could Google's supercomputer crack Bitcoin? Crypto community maintains positive outlook

Could Google's supercomputer crack Bitcoin? Crypto community maintains positive outlook

Bitcoin faced mixed sentiments on Tuesday after crypto community members spoke on the potential of Google's new quantum chip Willow's ability to crack blockchain networks and render the security of public key cryptography useless.

More Bitcoin News
Crypto Today: Microsoft Rejects Bitcoin Reserve Plan, as Cardano, XRP Lead Market Rebound

Crypto Today: Microsoft Rejects Bitcoin Reserve Plan, as Cardano, XRP Lead Market Rebound

Amid an escalating geopolitical crisis, the global crypto market crash on Monday saw over $1.5 billion worth of liquidations, triggering double-digit losses across top-ranked digital assets.

More Cryptocurrencies News
Litecoin Price Prediction: LTC to hold $100 support as traders deploy $10M of leverage

Litecoin Price Prediction: LTC to hold $100 support as traders deploy $10M of leverage

Litecoin price broke below the $110 level on Tuesday, down 20% in a frenetic 24 hours as rising geopolitical risks triggered volatility across global crypto markets.

More Litecoin News
Bitcoin: Long-awaited $100K milestone meets profit taking

Bitcoin: Long-awaited $100K milestone meets profit taking

Bitcoin ends the working week hovering around $98,000 after a very volatile Thursday when it surpassed the $100K milestone and underwent a sharp correction. Strong institutional demand, whale accumulation, and the choice of a pro-crypto figure to lead the US SEC fueled the rally this week. 

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP