- The exchange suspended a team member for insider trading after an internal review confirmed they misused confidential BNB Chain data to buy tokens early and sell for profit.
- Binance is currently working with authorities to take legal steps against the culprit and has set plans to strengthen internal controls to prevent future misconduct.
- While Binance did not name the culprit, users on X have linked the incident to Freddie Ng, who allegedly made $82,400 from the insider trading of uDEX’s UUU token.
Binance recently suspended a team member for insider trading. According to news from the inside, it revealed that the employee misused knowledge from a past BNB Chain position to profit from a token launch before it was publicly announced.
The crypto exchange suspended the employee for insider trading after a complaint reached the internal audit about unusual transactions linked to a recently launched token. A proper review was done, and it was confirmed that the individual had misused confidential details from their past roles at BNB Chain to buy tokens early with multiple accounts even before the Token Generation Event (TGE).
The individual later sold their part of the holdings for quick profits. It came to the exchanges’ notice on the 23rd of March, and after investigating, the company took action by suspending the worker and pursuing legal steps.
Binance Strengthens its Policies and Takes Legal Action
Binance has also announced that it will cooperate with concerned authorities to ensure legal steps are taken, and any money linked to the breach will be seized according to financial laws. The Exchange also emphasized its commitment to trading fairly and stated that any kind of market manipulation will not be tolerated.
In a bid to prevent a similar act, Binance plans to introduce a more strict measure to track staff activities and update internal policies. It also acknowledged the importance of whistleblowers in uncovering misconduct and confirmed that valid reports are reviewed and rewarded. Insider trading is still a serious issue in the crypto space, where transparency is very important for investors confidence.
Binance did not disclose the culprits’ name, but users on X claimed it was Freddie Ng. A wallet identified by the user “py” on DEX Screener suggests that Ng earned $82,400 from one of the accounts used in the insider trading of uDEX’s UUU token.
Binance assured users that it will continue improving its oversight, enforcing rules, and encouraging the community to report concerns through official channels.
Related Reading | XRP’s Price Strategy: Is $44 the Ultimate Target for Crypto Investors?