Binance, the world’s leading cryptocurrency exchange, has initiated an investigation against one of its employees for potential violations related to insider trading.
Investigation and Outcome
The allegations surfaced after receiving complaints on March 23. Internal investigation revealed that the employee used multiple linked wallets to purchase tokens before any official Token Generation Event (TGE) was announced. Once the project went public, the employee sold part of the holdings while keeping the rest for future gains. The employee's name has not been disclosed, but they were immediately suspended. Binance is cooperating with legal authorities to take necessary actions.
Linked Wallet and Profits
As reported by Wu Blockchain, a suspected Binance employee linked to a wallet under the name Freddie Ng made a profit of $113,000 by trading UUU tokens on Binance Smart Chain (BSC). The wallet, which initially bought 24.1 million UUU tokens for $6,227, later sold 6.02 million tokens, generating substantial returns. The remaining 18.09 million tokens, valued at around $200,000, are distributed across nine different wallet addresses.
Binance’s Reaction to the Incident
Binance has confirmed its commitment to maintaining transparency and fairness in crypto trading. The company is fully cooperating with authorities and plans to take legal action against those found guilty of insider trading. This is not the first instance of such misconduct among major exchanges. Last year, a former Coinbase manager admitted to leaking confidential information for personal gain. Binance, however, remains proactive, offering bounties of up to $10,000 to employees who report insider trading or information leaks within the company.
Binance continues to actively combat insider trading-related violations, remaining committed to high standards of integrity and legality.
