Binance suspends employee for alleged insider trading
Binance suspends employee over insider trading allegations.
Cryptocurrency exchange Binance has suspended a staff member over allegations of insider trading, following claims that the employee used non-public information to profit from a soon-to-launch crypto project.
The platform announced the suspension in a post on X (formerly Twitter) on Tuesday, stating the individual had violated company policy by engaging in front-running activity based on privileged information.
Alleged Insider Trading Tied to Former Role at BNB Chain
According to Binance, the employee—currently part of the Binance Wallet team—purchased a significant amount of a project’s tokens ahead of its Token Generation Event (TGE), then sold part of the holdings for personal gain. The exchange clarified that the individual had obtained the sensitive information during a previous role in business development at BNB Chain, and that the Wallet team itself does not have access to private details regarding token events.
“This behavior constitutes front-running based on non-public information obtained from his previous role and is a clear breach of company policy,” Binance stated. “The staff member was suspended immediately and is pending further disciplinary action.”
UUU Token Linked to Investigation
While Binance did not officially disclose the project involved, users on social media platform X have pointed to the memecoin UUU, which runs on Binance Smart Chain, as the likely candidate. X user “pycharts” posted a wallet address allegedly linked to Binance employee Freddie Ng, who reportedly sold over 6 million UUU tokens shortly before the token’s price plunged on March 23.
The screenshots shared suggest that Ng may have used insider knowledge to time the trade, an allegation that has prompted further scrutiny.
Exchange Pledges Transparency and Whistleblower Rewards
In response to public speculation, Binance’s official Chinese-language account confirmed that an internal investigation is underway. The company pledged to announce its findings publicly and stated that it is fully cooperating with authorities in the employee’s jurisdiction. Binance also indicated that it would pursue legal action under relevant laws.
As part of its commitment to transparency, Binance announced it has awarded $100,000 to four whistleblowers who reported the suspected misconduct through its official channel.
The incident adds to the growing scrutiny surrounding corporate governance and ethical standards in the crypto industry, with Binance aiming to reinforce internal compliance mechanisms in the wake of the breach.
Recently we wrote, that São Paulo court has upheld a decision ordering Binance, the world’s largest cryptocurrency exchange by volume, to reimburse a Brazilian investor whose account was drained of bitcoin following a cell phone theft.
