Binance Exec Claims Unfair Dismissal After Reporting Bribery

Adding to Binance's ongoing controversies, former executive Amrita Srivastava told an employment tribunal that she was unfairly dismissed by the company

Binance, the world’s largest cryptocurrency exchange, has been hit with fresh allegations of misconduct, just months after agreeing to pay a record $4.3 billion to settle allegations of money laundering and sanction violations.

A former UK-based executive at Binance has claimed she was fired after reporting a colleague for accepting a bribe to expedite a client’s application to integrate with the exchange’s systems.

Amrita Srivastava, who worked in Binance’s Link department, reported the alleged incident to senior management in April 2023, according to evidence presented at an employment tribunal.

She was dismissed a month later, prompting questions over the company’s treatment of whistleblowers.

“I was not prepared to look the other way when someone had defrauded a customer and yet was still a part of the team,” Srivastava said.

“The bribe was a clear violation of ethical standards, and I felt obligated to report it.”

Binance has denied any link between the bribery allegations and Srivastava’s dismissal.

A spokesperson for the company told Bloomberg that Srivastava’s performance issues, not her bribery claims, led to her termination.

“The matter was already under review by the internal audit team when these allegations were made,” the spokesperson added.

Binance has faced similar claims before, including accusations that it fired a market surveillance investigator who uncovered evidence of VIP clients engaging in manipulative practices like wash trading in the Binance marketplace.

In March, the exchange was also hit with allegations of insider trading.

Just before Binance announced the listing of BOME, a trader purchased 314 million tokens on a decentralized exchange for $2.3 million.

Following the listing announcement, the value of the trader’s tokens skyrocketed to $8 million, raising suspicions of an unfair advantage.

However, an internal investigation by Binance concluded that the trader in question had no connection with the company.

The fresh allegations against Binance come as the exchange is still working to rebuild trust following its $4.3 billion settlement with the Justice Department, the Commodity Futures Trading Commission, and the New York State Department of Financial Services.

The settlement, which was announced in December, resolved allegations that Binance operated an unlicensed money transmitting business and violated sanctions against Iran.

As part of the settlement, Binance agreed to three months of independent monitoring and to report any suspected violations of law to the authorities.

The exchange’s co-founder and former CEO, Changpeng Zhao, also agreed to step down from his role and to serve three months in prison for failing to supervise the company adequately.