The world's largest cryptocurrency exchange, Binance, has suspended an employee for allegedly using insider information to profit.
Insider Trading Allegations
In a statement released on X, Binance revealed that a personnel from the Wallet team had purchased a large volume of tokens before the Token Generation Event (TGE), selling some holdings afterwards for substantial gains. Binance emphasized that the employee clearly violated company policy by leveraging non-public information acquired from his previous role at BNB Chain.
Alleged Token and Investigation
While Binance did not specify the token involved, community members on X suggested it might be UUU (U DEX Platform), a memecoin on Binance Smart Chain. An X user, @pycharts, posted a screenshot of a transaction showing over 6 million UUU tokens sold around 7 a.m. on March 23, leading to a significant price drop.
Binance's Response
Responding to these allegations, Binance's official Chinese X account acknowledged community concerns and announced that an internal investigation is underway. The exchange promised to disclose the findings publicly once the investigation concludes.
Binance is actively conducting an internal investigation into the incident and plans to share the results with the public to enhance operational transparency.
