Binance has suspended a staff member from its Binance Wallet team amid allegations of insider trading and is considering further legal action following an internal investigation.
In a March 25 post on X, Binance Wallet revealed that it initiated an investigation on March 23 after receiving a complaint accusing one of its employees of using insider information to execute front-running trades for personal gain.
According to Binance Wallet, its preliminary findings suggest that the staffer, who joined the team last month, leveraged confidential information from their prior role in business development at BNB Chain. The employee allegedly became aware of an upcoming Token Generation Event (TGE) for a project and anticipated heightened community interest. Taking advantage of this, they reportedly used multiple linked wallets to purchase a substantial amount of the project’s tokens before the public announcement and later offloaded part of their holdings for significant profits.
Binance Wallet described the alleged actions as a violation of company policy, emphasizing that the individual was suspended immediately, pending further disciplinary measures. The company also stated that it would fully cooperate with authorities in the relevant jurisdiction should legal action be required.
While Binance did not disclose the name of the suspended employee, speculation had already been circulating on X. Several users, including “py,” pointed to Freddie Ng, a former operations manager at BNB Chain who, according to his LinkedIn profile, joined Binance Wallet’s business development team last month. Blockchain data shared by “py” suggested a connection between Freddie Ng and wallets that traded the token in question, U DEX Platform (UUU), profiting approximately $82,400.
Binance Wallet acknowledged the role of the crypto community in flagging the issue but clarified that whistleblower rewards would only be given to those who reported via its official whistleblowing email. It announced a $100,000 reward, to be distributed equally among four anonymous whistleblowers who submitted their findings through the designated channel.
As the investigation continues, Binance Wallet has reaffirmed its commitment to upholding transparency and integrity within its operations.
Notably, Binance is set to trial its new community-driven approach to the delisting process. In a March 20 customer update, the crypto exchange announced the launch of its “Vote to Delist” mechanism, allowing users to vote on which tokens should be removed from the platform
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