Binance Places a $5 Million Reward on Fake Listing Agents as Scrutiny Intensifies
Binance has launched a reward for whistleblowers of up to $5 million as part of a broad crackdown on third-party fraudulent 'listing agents.'
The exchange warns cryptocurrency projects that any individual claiming to influence listings on the exchange is operating illegally.
Binance Offers $5 Million Reward for Whistleblowers as It Increases Crackdown on Fake Listing Agents
The announcement, published on Wednesday in a transparency update, comes at a sensitive time for the world's largest cryptocurrency exchange.
Binance faces intensified scrutiny over its listing practices following alleged insider trading incidents linked to leaked information about tokens.
In its notice, Binance reiterated that all token listing requests must be submitted exclusively through its official channels, covering Binance Alpha, Futures, and Spot markets.
The exchange emphasized that it does not authorize brokers, consultants, or external intermediaries to trade, facilitate, or guarantee listings.
'Any party claiming to represent Binance or offer services related to listings in exchange for payment is engaging in fraudulent behavior,' the company said.
Internal Audit Findings and Blacklist
The exchange revealed that an internal audit discovered repeated cases of individuals and companies falsely presenting themselves as facilitators connected to Binance while soliciting fees from project founders.
As a result, the exchange has blacklisted seven entities and individuals, including:
BitABC
Central Research
May/Dannie
Andrew Lee
Suki Yang
Fiona Lee, and
Kenny Z
According to Binance, these parties were identified for falsely implying relationships with the exchange or offering paid listing services. The company stated that legal action would be taken 'where appropriate.'
Blockchain data provider RootData shows that one of the groups on the blacklist, Central Research, has previously backed several crypto projects, including Fireverse, Nebula Revelation, AKI Network, Fusionist, and Artyfact.
Of those, only Fusionist (ACE) is currently traded on Binance. The exchange did not establish any connection between the blacklist findings and previous listing decisions.
To encourage whistleblowing, Binance stated that informants providing verifiable evidence of fraudulent activity could receive rewards of up to $5 million, depending on the quality and impact of the information presented.
Binance Strengthens Listing Rules Amid Reaction to Insider Trading
As part of the update, Binance published a detailed breakdown of how projects move through its listing ecosystem, from early-stage exposure on Binance Alpha to Futures listings and eventual Spot.
The exchange emphasized that it does not charge fees for listing requests and that all communication must come directly from a project's core team.
Projects found to have used intermediaries or third parties will be immediately disqualified from current and future listing reviews, Binance warned. However, teams that proactively report fraudulent agents may receive priority consideration.
The announcement follows Binance's confirmation earlier this month that an employee leaked confidential listing information related to the 'year of the yellow fruit' meme coin. The exchange's co-CEO, Yi He, had addressed the incident.
'Currently, the community is engaging in community behaviors not related to Binance by issuing coins based on Binance's official Twitter, my statements, or words extracted from posts. But we cannot stop posting just because someone might come looking for angles,' he said.
Binance also disclosed that it distributed $100,000 in rewards to five informants who helped expose misconduct.
Taken together, the blacklist, the rewards program, and the stricter enforcement signal a broader effort by Binance to rebuild trust around its listing process.#Binance $BNB
