{"id":125751,"date":"2025-03-25T06:16:17","date_gmt":"2025-03-25T06:16:17","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=125751"},"modified":"2025-03-25T06:16:17","modified_gmt":"2025-03-25T06:16:17","slug":"binance-suspends-staffer-after-internal-investigation-into-insider-trading","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=125751","title":{"rendered":"Binance suspends staffer after internal investigation into insider trading"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsCrypto exchange Binance has suspended a member of its Binance Wallet team, adding it could take further legal action after launching an internal investigation over allegations of insider trading.<br \/>\nThe exchange\u2019s crypto wallet business, Binance Wallet, launched an investigation on March 23 after it \u201creceived a complaint alleging that one of our staff members engaged in front-running trades using insider information to gain improper profits,\u201d it said in a March 25 X post.<br \/>\nIt claimed a preliminary investigation found a Binance Wallet staffer who joined the team last month was suspected of using information from a former position in a business development role at BNB Chain to \u201cfront-run\u201d trades of a project token.\u00a0<br \/>\n\u201cThe employee was aware the project was planning a Token Generation Event (TGE) and anticipated it would generate significant community interest,\u201d Binance Wallet wrote.<br \/>\nIt claimed the staffer \u201cused multiple linked wallet addresses to purchase a large volume of the project\u2019s tokens\u201d before it publicly announced the token launch and then, after the announcement, \u201cquickly sold part of his holdings to realize significant profits.\u201d<br \/>\nBinance Wallet accused the staff member of front-running trades based on non-public information gained from a previous role in breach of company policy.\u00a0<br \/>\nIt added the staff member was \u201csuspended immediately and pending further disciplinary action,\u201d and the company would cooperate with authorities in the relevant jurisdiction to take legal action.<br \/>\nThe company did not name the staff member but noted the allegations circulating on X prompted the investigation.<br \/>\nEarlier this week, multiple X users pointed to a former operations manager at BNB Chain \u2014 Freddie Ng \u2014 whose LinkedIn shows he joined Binance Wallet\u2019s business development team last month.<br \/>\nAs noted by X user \u201cpy,\u201d one of the wallets that DEX Screener shows has profited $82,400 from the token in question, U DEX Platform (UUU), is a wallet that received UUU tokens from another wallet initially funded by the address \u201cfreddieng.bnb\u201d \u2014 which Ng had shared on his X account.<br \/>\nA wallet allegedly linked to a Binance staffer sold holdings of a token just minutes after it debuted on March 23 and hit a peak value of $31.5 million. Source: DEX ScreenerBinance did not immediately respond to a request for comment. Ng was contacted for comment.<br \/>\nRelated: BNB Chain launches $100M liquidity program\u00a0<br \/>\nBinance Wallet said it appreciated the public efforts, but it would only reward those who submitted reports to a whistleblowing email \u201cto protect whistleblowers\u2019 interests.\u201d<br \/>\nIt said it would hand out $100,000 equally distributed among four anonymous whistleblowers who emailed the exchange.<br \/>\nMagazine: What are native rollups? Full guide to Ethereum\u2019s latest innovation\u00a0<a href=\"https:\/\/cointelegraph.com\/news\/binance-suspends-staffer-threatens-legal-action-insider-trading-probe?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsCrypto exchange Binance has suspended a member of its Binance Wallet team, adding it could take further legal action after launching an internal investigation over allegations of insider&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/125751"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=125751"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/125751\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=125751"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=125751"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=125751"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}