Binance Suspends Wallet Team Member Following Insider Trading Investigation

Binance Suspends Wallet Team Member Following Insider Trading Investigation

TLDR

• Binance suspended a wallet team staff member after allegations of insider trading.
• The employee allegedly used information from their previous BNB Chain role to front-run a token’s launch.
• The staffer purchased large volumes of tokens before a Token Generation Event and sold them for significant profits.
• Four whistleblowers will share a $100,000 reward for reporting the violation.
• The project in question appears to be the UUU (U DEX Platform) token.

Cryptocurrency exchange Binance has suspended a member of its Binance Wallet team following an internal investigation into allegations of insider trading. The company announced the suspension on March 25 after receiving complaints that the employee used confidential information to gain unfair profits.

The investigation began on March 23 when Binance received reports that the staff member may have engaged in front-running trades. Front-running occurs when someone uses non-public information to make trades before others have access to the same information.

According to Binance, the preliminary investigation found that the employee, who joined the Wallet team just last month, used information from their previous position in business development at BNB Chain. This information gave them advance knowledge of an upcoming Token Generation Event (TGE).

Investigation Findings on Staff Misconduct in Trading

Dear Binance Users and Community Members,

On March 23, 2025, Binance’s Internal Audit team received a complaint alleging that one of our staff members engaged in front-running trades using insider information to gain… pic.twitter.com/SVVvu4rX1x

— Binance Wallet (@BinanceWallet) March 25, 2025

The staff member knew the project would generate strong community interest. They then used this insider knowledge to purchase large amounts of the project’s tokens before any public announcement was made.

Binance claims the employee used multiple linked wallet addresses to buy the tokens. After the public announcement, they quickly sold part of their holdings to make substantial profits.

The company did not name the employee in their official statement. However, multiple users on social media platform X pointed to Freddie Ng, a former operations manager at BNB Chain who reportedly joined Binance Wallet’s business development team in February.

Social media users presented evidence connecting Ng to the front-running. One X user named “py” showed that a wallet that made $82,400 from the token was linked to an address called “freddieng.bnb,” which Ng had shared on his X account.

The token in question appears to be U DEX Platform (UUU). Data from DEX Screener shows that a wallet allegedly linked to the Binance staffer sold holdings of the token just minutes after it debuted on March 23.

At its peak, the token reached a value of $31.5 million. The sudden selling of over 6 million UUU tokens caused the price to crash soon after.

Binance stated that the staff member’s actions were “a clear breach of company policy.” They have been suspended immediately and are pending further disciplinary action.

The company has also said it will work with authorities in the relevant jurisdiction. Binance plans to take legal action against the employee based on applicable laws.

Binance Wallet clarified that their team would not normally have access to private information about the project. The insider information came solely from the employee’s previous role at BNB Chain.

The exchange also announced it would reward the whistleblowers who brought the issue to light. A reward of $100,000 will be equally distributed among four anonymous whistleblowers who emailed the company directly.

Binance emphasized that it would only reward those who submitted reports to their official whistleblowing email. This policy exists to protect the whistleblowers’ interests.

This incident bears similarities to a 2023 case involving Coinbase. In that situation, a former manager named Ishan Wahi admitted to leaking token-listing details to his brother and another contact.

Coinbase later became involved in the case to contest Securities and Exchange Commission charges. The SEC had claimed that the tokens involved in Wahi’s insider trading were securities.

As of now, Binance has not responded to additional requests for comment. Ng, the alleged employee involved, has also been contacted for comment but has not provided a response.

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