In a significant development within the cryptocurrency sector, Binance has suspended a member of its Binance Wallet team amid allegations of insider trading. The exchange announced that an internal investigation was initiated on March 23, after receiving a complaint that one of its employees was involved in front-running trades based on insider information.
The investigation revealed that the staff member, who had joined Binance Wallet just a month prior, is suspected of leveraging confidential information gained from a previous position at BNB Chain. Specifically, the employee was reportedly aware of a forthcoming Token Generation Event (TGE) and anticipated that it would generate substantial community interest.
According to Binance Wallet, the employee allegedly utilized multiple linked wallet addresses to acquire a significant volume of tokens related to the project before the official announcement of the TGE. Following the announcement, the staff member is said to have quickly sold a portion of the tokens, reaping considerable profits.
The allegations against the employee include engaging in trades based on non-public information, constituting a breach of the company’s policies. Binance Wallet indicated that the staff member was immediately suspended and that further disciplinary action is pending. The company also stated its intention to cooperate with relevant authorities to explore possible legal steps.
Although the name of the suspended employee was not disclosed, speculation has emerged on social media regarding a former operations manager at BNB Chain, Freddie Ng, who recently joined Binance Wallet’s business development team.
Reports indicate that one of the wallets linked to the employee made a profit of approximately $82,400 from the token in question, identified as the U DEX Platform (UUU). This wallet had received UUU tokens from another address connected to Ng, as shared on his social media account.
Binance has yet to respond to requests for comments, and efforts to contact Ng have been made for further clarification.
In light of these developments, Binance Wallet has expressed gratitude towards the public for their vigilance. However, it emphasized that any rewards for whistleblowers would only be provided to those who report through official channels to ensure the protection of their identities. The company announced a total reward pool of $100,000, which will be evenly distributed among four anonymous whistleblowers who come forward.
As investigations continue, the crypto community is left to ponder the implications of this incident on trust and integrity within digital asset exchanges.
