Binance recently suspended a member of its Binance Wallet team amidst allegations of insider trading. The crypto exchange initiated an internal investigation on March 23 following complaints about a staffer allegedly using non-public information for personal profit.
The investigation was launched after Binance received a complaint through the platform X, on March 25. The complaint specified that a staff member, through front-running trades and privileged information, was gaining irregular profits. The preliminary findings suggest that the staffer, who had just joined the team the previous month, leveraged insider knowledge from a prior role in business development at BNB Chain.
Binance Wallet reported that the employee had prior knowledge that the project was going have a Token Generation Event (TGE) and expected that it would gain great community interest. The accused reportedly used several linked wallet addresses to buy large amounts of the project’s tokens before the official token launch announcement. After the public announcement, the staffer allegedly sold part of his holdings to realize significant profits.
The company has stated that the staff member was immediately suspended, and they are prepared to cooperate with authorities for potential legal action. Binance has not publicly named the individual involved. Nevertheless, they acknowledged that allegations circulating on X (formerly Twitter) instigated the investigation.
Several X users had identified Freddie Ng, a former operations manager at BNB Chain, as a possible suspect, which was reinforced by his LinkedIn profile, confirming his recent move to Binance Wallet’s business development team. X user “py” highlighted that one of the wallets, shown by DEX Screener to have profited $82,400 from the token U DEX Platform (UUU), received tokens from a wallet funded by the address “freddieng.bnb”—an address Ng had shared on his X account.
A wallet, thought to belong to a Binance staffer, sold its token holdings mere minutes after the token’s debut on March 23, peaking at a value of $31.5 million.
Binance expressed gratitude for public contributions to the investigation, adding they intended to reward those who submitted reports through a whistleblowing email to ensure whistleblowers’ protection. The company reported that a sum of $100,000 would be distributed equally among four anonymous whistleblowers.
