Binance, one of the largest cryptocurrency exchanges, has suspended a Binance Wallet team member following insider trading allegations. The exchange initiated an internal investigation amid claims of profiting from insider information.
Investigation begins
On March 23, Binance Wallet launched an investigation after receiving a complaint against a staff member suspected of using insider information for trading. The company stated the employee, with previous ties to BNB Chain, might have used details about an upcoming Token Generation Event for personal gain.
Accused employee
The employee used multiple wallets to buy tokens before their public announcement and sold them post-price increase. As a potential suspect, former BNB Chain operations manager Freddie Ng was identified.
Binance's response
Binance Wallet immediately suspended the employee and is collaborating with law enforcement for potential legal action. The company emphasized the protection of whistleblowers, offering rewards for honest breach reports.
Binance takes decisive steps to combat internal misconduct and protect fair business practices. Such incidents highlight the importance of transparency and integrity in the cryptocurrency industry.
