Binance suspends employee over insider trading allegations

Binance has suspended one of its employees for breaching company policy on insider trading and using insider data to his advantage in a new cryptocurrency venture. The case involves a member of the Binance Wallet team who allegedly bought a large amount of the token before its TGE and then sold part of it for a good profit.

As reported by Binance on Tuesday, the trader abused his employment and knowledge from his previous working history at BNB Chain. Although the Wallet team cannot be privy to specific details of such projects, the person utilized info acquired from business development features to shorten a project’s TGE.

According to Binance, this act is defined as “front-running” and is against the company’s policies. The company noted that the employee’s action was in violation of the organizational policies, and the employee was suspended immediately. Binance also explained that this was not connected directly with the Wallet team since the team does not have access to specific project information.

Memecoin project linked to alleged insider trading

However, Binance did not reveal the name of the project behind the move, but the crypto world assumed that the token is the UUU (U DEX Platform) memecoin which belongs to the Binance Smart Chain project.

These speculations arose when a user with the pseudonym “pycharts” posted a screenshot that appeared to link the Binance employee’s address. According to the post, the wallet sold more than 6 million UUU tokens on March 23, when the token’s price dropped.

The alleged insider trading led to high volatility in the market, especially the UUU token, which experienced a tremendous drop in price after the sales were made. An X user attracted the attention of others and connected it to the wallet address of Freddie Ng, a person known to be working with the Binance Wallet and a team member in the business development and growth department.

4 photos to show you all that you should clean your wallets don't get caught lackinghttps://t.co/54Q7PvnRFd pic.twitter.com/dz7s1w0F86

— py (@pycharts) March 23, 2025

After the allegations, Binance responded quickly. The company responded to the social media users concerning the issue and stated that they had opened an inquiry within the company. Binance also promised the public that it would disclose the outcome as soon as it was concluded.

Further, Binance stated its willingness to engage with the authorities in the employee’s country of residence and that it would compensate individuals or organizations that blew the whistle up to $100,000.

Australia alerts crypto users on impersonation scam

Meanwhile, Binance is also facing other security challenges. The Australian Federal Police (AFP) recently put out a notice about a specific type of crypto scam currently active in the country. More than 130 men and women have been identified as defrauded in an impersonation scam. 

Scammers are now sharing messages that mimic Binance’s notifications and claim that the user’s crypto account has been compromised. The messages suggest that users create new wallets in order to save their money and other valuable items.

The scam is very believable because the messages are carefully engineered. The scammer’s plan is to make the user send money to a “trust wallet” belonging to the scammer. The AFP has warned its users to be wary of these scams.

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