Binance Announces Investigation into Employee Insider Trading
Binance today issued a statement announcing that the Binance Wallet has confirmed an employee utilized non-public insider information obtained during their previous position in BNB Chain business development to engage in “front-running” trades. Binance will cooperate with judicial investigations and distribute a total of $100,000 in rewards to four whistleblowers.
(Background: Meme coins WHY and CHEEMS listed on Binance experienced a “headless crash,” with large investors urging: please slow down the mouse warehouse dumping.)
(Supplementary Background: Debunking the mouse warehouse! Binance’s CMO: No meme coins guaranteed listing! Usability is the key to the review.)
Binance Wallet Suspends Employee for Alleged Insider Trading
The world’s largest cryptocurrency exchange, Binance, announced today (25th) that a team employee has been suspended due to allegations of insider trading and will cooperate with judicial authorities for accountability. The company has also issued a total of $100,000 in whistleblower rewards to four reporting users.
Binance Confirms Employee Involvement in “Front-running”
According to the statement, Binance’s internal audit team immediately launched an internal investigation upon receiving a report on March 23. Preliminary investigation results indicate that the employee from the Binance Wallet team, suspected of “front-running,” utilized non-public insider information acquired during their previous role in BNB Chain business development to purchase large quantities of the project’s tokens in advance using multiple associated wallets before the project’s public TGE. After the news was released, the employee quickly sold off part of the tokens for substantial profit, retaining a considerable amount of unrealized gains from the remaining tokens, constituting typical “front-running” behavior that severely violated the company’s internal policies.
Binance Wallet emphasized that there was no insider trading associated with the Binance Wallet team. Although the employee in question was working within the Binance Wallet team at the time of the alleged incident, the Binance Wallet team had no business relationship or cooperation with the involved project.
Project Suspected to Be UUU
Currently, Binance has not disclosed the specific name of the project; however, prior to the incident’s exposure, the crypto community investigated and found that Binance Wallet employee Freddie Ng was allegedly involved in “front-running,” realizing a profit of $113,000 while still holding $200,000 in unrealized gains, raising community concerns and criticism. The token in question may be UUU.
An address related to Freddie Ng (freddieng.bnb) transferred funds to an address starting with 0xED. Before the UUU token went live on the BSC chain, the address starting with 0xED purchased 24.1 million UUU for 10 BNB (average price $0.00026), accounting for about 2.41% of the total supply. Subsequently, the address transferred all tokens to another address (0x44…8870) and sold 6.022 million UUU at a price of $0.01884, realizing a profit of $113,000, which caused UUU’s price to plummet over 24% within one minute. The address starting with 0x44 still holds 2.903 million UUU and has distributed 15.19 million UUU to eight addresses, with unrealized profits exceeding $200,000.
Currently, Binance has not clarified whether the implicated employee is indeed Freddie Ng; however, given the timing of the investigation as stated in Binance Wallet’s statement, the community widely believes that the investigation pertains to the same individual. Following a statement from the UUU project at 10 AM today, the token surged to a high of $0.010482 within an hour, currently reporting at $0.00966, an increase of over 11% in the past 24 hours, although it has dropped nearly 70% from the historical high of $0.031928 reached on the 23rd.
Suspension and Cooperation with Judicial Investigation
Due to the confirmation of violations, Binance stated that the implicated employee has been immediately suspended pending further disciplinary action. The company will actively cooperate with relevant authorities in the employee’s jurisdiction and take appropriate legal action according to applicable laws. Any related assets will be handled in full compliance with applicable laws and regulations. Binance also expressed a “zero tolerance” stance toward any form of insider trading or violations and will continue to strengthen internal regulatory mechanisms and improve policies to prevent the recurrence of such incidents, welcoming continued community oversight.
Finally, Binance has awarded a total of $100,000 to four users who reported through official channels to acknowledge their contributions to maintaining market fairness.
