Binance has suspended an employee for illegal trading activities using confidential information.
Investigation into Insider Trading Allegations
On March 23, Binance’s Internal Audit team revealed that an employee used non-public information for trades during a TGE, violating laws. The employee used multiple wallets to purchase a large number of tokens before their official announcement, leading to the suspension and investigation.
Role of Insider Knowledge
The suspended employee recently joined Binance’s team after serving at BNB Chain. They had access to sensitive data concerning an upcoming Token Generation Event, leading to violations of internal policies and laws. Binance noted that the Wallet team should not have had access to this information, highlighting the incident's seriousness.
Alleged Front-Running of UUU Token
The incident involves the UUU token and the U DEX Platform project. The employee allegedly used multiple wallet addresses to purchase tokens before the official TGE, making significant profits when the market reacted. External users like "py" on X provided additional details, including screenshots showing trading involvement. Binance initiated an internal investigation and affirmed commitment to legal response.
This case highlights the importance of regulatory compliance in the cryptocurrency market and its impact on industry transparency and trust.
