The cryptocurrency exchange Binance has suspended a member of its Binance Wallet team for allegedly using insider information to secure illicit profits.
Investigation Findings on Staff Misconduct in Trading
Dear Binance Users and Community Members,
On March 23, 2025, Binance’s Internal Audit team received a complaint alleging that one of our staff members engaged in front-running trades using insider information to gain… pic.twitter.com/SVVvu4rX1x
— Binance Wallet (@BinanceWallet) March 25, 2025
According to the report, the team member acquired a significant amount of tokens from a project planning a TGE. Following the public announcement of the coin launch, he sold part of the assets, securing substantial profits.
Binance clarified that Binance Wallet employees do not have access to confidential project information. The insider exploited his knowledge of plans from his previous role as Director of Business Development at BNB Chain.
“As a result of this behavior, the employee was immediately suspended and awaits further disciplinary action,” the statement read.
The exchange intends to pursue legal action against the insider according to the jurisdictional rules of his residence.
Binance did not disclose details, but users claim the individual in question is Freddie Ng. He spent $6,227 to purchase 24.1 million UUU tokens (2.4% of the total supply).
4 photos to show you all that you should clean your wallets don’t get caught lackinghttps://t.co/54Q7PvnRFd pic.twitter.com/dz7s1w0F86
— py (@pycharts) March 23, 2025
The insider then sold 6.02 million UUU, earning approximately $113,600. About 18.1 million tokens, valued at ~$200,000, remain stored across his nine addresses.
Binance announced it will distribute a $100,000 reward among four whistleblowers who reported the alleged violation.
Back in 2024, the exchange sought an insider within the team following a scandal involving the listing of the Ronin (RON) token.