Cryptocurrency exchange Binance has suspended an employee from its Binance Wallet team following internal allegations of insider trading for personal gain. The case involves suspected token manipulation prior to an official project launch. The investigation is still ongoing.
According to Binance Wallet, on March 23, the company received a complaint alleging that a recently hired employee had engaged in front-running — the act of purchasing tokens based on undisclosed information about an upcoming launch event.
Specifically, the employee allegedly had prior knowledge of a Token Generation Event (TGE) being planned by the team behind the U DEX Platform (UUU).
Using connected wallets, the employee is accused of purchasing 24.1 million UUU tokens, worth approximately $6,227 — representing about 2,4% of the token’s total supply. Following the public announcement of the project, the employee quickly sold part of the holdings, reportedly locking in a profit.
Binance stated that the employee's actions violated the company’s internal policies.
Suspicions Point to Former BNB Chain Manager
Although Binance has not officially disclosed the identity of the individual, users on X have linked the incident to Freddie Ng, a former Operations Manager at BNB Chain.
Ng’s LinkedIn profile shows that he joined the Binance Wallet team in March. A user known as py on X pointed out that one of the wallets that profited $82.4K from trading UUU was directly linked to the address "freddieng.bnb", which had previously been shared by Ng himself on social media.
Company Promises Action and Rewards Whistleblowers
Binance confirmed that the employee has been suspended and is awaiting further disciplinary measures. The company also indicated that the individual could face legal action in the relevant jurisdiction.
The Binance Wallet team thanked the community for its support but clarified that it would only reward those who reported violations via Binance’s internal whistleblower channel.
As a gesture of appreciation, Binance announced a reward of $100,000, which will be distributed among four anonymous whistleblowers who submitted reports through the official email channel.
This incident adds to the growing scrutiny around internal practices at major crypto platforms, especially as the industry faces increasing calls for transparency, accountability, and stronger insider trading safeguards.
This post is for informational purposes only and is not an ad or investment advice. Please do your own research making any decisions.