25-3-2025 – Leading digital asset exchange Binance has suspended a team member from its Wallet division amidst serious allegations of improper trading practices.
The controversy emerged when vigilant community members uncovered suspicious trading patterns linked to the Token Generation Event (TGE) of U DEX Platform’s UUU token. Blockchain analytics revealed a sophisticated trail of transactions yielding profits of $82,400, traced to wallets allegedly connected to a recently appointed business development executive.
The matter came to light through social media investigations, where users established connections between the profitable trades and digital wallets associated with Freddie Ng, who transitioned from BNB Chain operations to Binance Wallet’s development team in February.
Following internal scrutiny, Binance determined that the individual under investigation had potentially exploited privileged information from their previous role at BNB Chain. The employee reportedly accumulated substantial token holdings prior to the public announcement, subsequently liquidating positions for considerable gains once the news broke.
In response to the incident, Binance has implemented a robust whistleblower reward programme, allocating $100,000 to be shared amongst four anonymous informants who aided the investigation through proper channels. The exchange emphasised that future whistleblowers must utilise official reporting mechanisms to qualify for compensation.
The cryptocurrency giant has adopted a stern stance on the matter, swiftly suspending the accused staff member whilst pursuing legal recourse. This incident highlights the ongoing challenges surrounding insider trading within the digital asset space, particularly as the industry grapples with regulatory scrutiny and calls for enhanced oversight.
Both Binance representatives and the suspended employee have yet to provide formal statements regarding the allegations, as investigations continue across multiple jurisdictions.
