Binance Employee Under Investigation
Binance has suspended a staff member following an internal investigation into insider trading allegations. The employee allegedly leveraged privileged information from a previous role to front-run trades before a token launch.
Suspicious Trading Activity Triggers Probe
On March 23, Binance received a complaint about unusual trading activity linked to a newly launched token. By March 25, the exchange confirmed that an employee from its Wallet team had used insider knowledge gained from their prior position at BNB Chain.
Front-Running a Token Generation Event
Reports indicate the staffer purchased a large amount of the project’s tokens via multiple connected wallets before the public launch. Once the announcement went live, they partially liquidated their holdings, securing a significant profit.
“The employee has been suspended immediately, and further disciplinary action is underway,” Binance stated, adding that it will cooperate with authorities and handle assets per regulatory guidelines.
Allegations Point to a Former BNB Chain Manager
Although Binance did not name the individual, speculation quickly spread on social media. Users on X linked the suspicious activity to Freddie Ng, a former BNB Chain operations manager who recently joined Binance’s Wallet business development team.
Blockchain journalist Colin Wu reported that a wallet allegedly tied to Ng spent $6,200 to acquire 24.1 million UUU tokens (2.4% of the total supply) before the public launch. Around 6 million tokens were later sold, generating $113,000 in profits.
Crypto’s Persistent Insider Trading Problem
Insider trading has long plagued the crypto industry, disadvantaging retail investors and eroding trust in digital assets.
Notable Insider Trading Cases in Crypto
- Coinbase Scandal (2022) – Ex-manager Ishan Wahi leaked token listing details to his brother and friend, leading to insider profits.
- Binance’s BOME Investigation (2023) – The exchange investigated internal trading tied to the launch of Solana-based meme coin Book of Meme (BOME).
- Aerodrome Finance (2024) – Suspended contributors following suspicious trades before the launch of Venice’s VVV token.
- Mystiko Network Airdrop Scandal (2023) – On-chain data exposed insider transactions funneling tokens into newly created wallets.
- LIBRA Meme Coin Controversy (2024) – Allegedly gave insiders early access, allowing them to profit $110 million post-launch.
Despite strict regulations and potential legal consequences, insider trading remains rampant in crypto markets. Binance’s latest case reinforces the urgent need for greater transparency and regulatory oversight in the industry.
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