TLDR
- Amid claims of insider trading, Binance has called a time-out on a member of its wallet crew.
- Allegedly, the employee tapped into exclusive info they had from their former tie to BNB Chain.
- Accusations have surfaced that a team member bought tokens ahead of a Token Generation Event, later flipping them for financial gain.
- Tip-offs about dubious transactions set off an internal review.
- Acknowledging those who filed the report, Binance is granting a $100,000 reward split among four whistleblowers.
The crypto giant Binance has taken a staffer out of play from its Wallet unit after piling into a probe on insider trading allegations. As of March 25, it was stated that said employee might have used sensitive intel from a prior gig to capitalize on their trades.
The inquiry kicked off on March 23 when Binance got wind of sketchy trading behavior. Those who tipped them off flagged moves that hinted at front-running, a tactic where trading happens fueled by foresight of future price-shifting events.
According to Binance Wallet's revelations, the individual in question joined the squad a month ago. Previously, they were situated in business growth at BNB Chain.
Unveiling outcomes of staff misconduct within trading realms.
Greetings, Binance Users and supporters!
On March 23, 2025, Binance's Fallacy Team noted down complaints alleging one team's paths to successful trades through insider knowledge... pic.twitter.com/SVVvu4rX1x
— Binance Wallet (@BinanceWallet) March 25, 2025
The entity contends that their personnel was aware of a project's upcoming Token Generation Event (TGE), anticipating a frenzy among crypto enthusiasts.
Binance asserts this member deployed a clutch of interconnected wallet addresses to hoard plentiful tokens belonging to the project, before anyone else got wind of a token debut.
Once the word came out, they swiftly cut loose a portion of the stash, reaping what Binance calls 'significant profits' thanks to the market shifts.
Trading Scheme Exposed
The buzz about this whole affair got rolling on social media outfit X. Observers noticed odd trades and wallet movements hinting at possible inside jobs.
While Binance's statement didn't drop the employee's name, chatter across social media points fingers at Freddie Ng. His LinkedIn outlines a recent transition from BNB Chain's business fronting to Binance Wallet.
An X user called 'py' pieced together transaction evidence yielding $82,400 gains from a token dubbed U DEX Platform (UUU), with the money-moving wallets warming up from an address tagged 'freddieng.bnb.'
Four pictures display the essential task of spring-cleaning wallets—you wouldn't want to be caught on the back foot. https://t.co/54Q7PvnRFd pic.twitter.com/dz7s1w0F86
— py (@pycharts) March 23, 2025
That address once made the rounds on Ng’s X timeline. Transaction logs reveal the wallet unloading assets mere moments after tokens premiered on March 23.
The token's zenith value of $31.5 million soon saw a decline, and the precise timing of trades implies the seller had insider insights on the launch's timetable.
Binance mentions they’ve laid the employee off momentarily while the examination continues, hinting at more rigorous countermeasures depending on the revelation.
The exchange has aspirations to collaborate with relevant legislative bodies. Binance expresses intentions to chase legal recourses based on prevailing statutes.
Saying thanks to the sources of the red flags, Binance has earmarked $100K. This bounty's split evenly amongst four unnamed tipsters who reached out via official reporting platforms.
This scenario echoes memories of a similarly shady backdrop over at Coinbase in 2023. Back then, an ex-manager named Ishan Wahi confessed to dribbling out token listing secrets to family for market maneuvers.
Dredging through matters, Binance’s delve uncovered no other wallet team members caught in the act of insider trading. The information tapped was from the employee's past engagement, not current circle.
