Binance Suspends Employees Over Alleged Insider Trading, What Happened?

Jakarta, Pintu News – Cryptocurrency exchange company Binance has suspended a Binance Wallet team member after an internal investigation found evidence of suspected insider trading. The move comes in response to complaints received regarding suspicious trading activity by the employee.

Internal Investigation Reveals Alleged Violations

On March 23, 2025, Binance Wallet received a complaint alleging that one of its staff engaged in trading by utilizing non-public information to gain undue advantage. Initial investigations indicated that the employee, who joined the team the previous month, allegedly used information from his previous position at BNB Chain to conduct “front-running” trades against certain project tokens.

The employee learned that the project was planning to hold a Token Generation Event (TGE) that was expected to attract significant community interest. With this information, the employee used multiple connected wallet addresses to purchase a large amount of the project’s tokens before the public announcement, and then quickly sold some of his holdings after the announcement to realize a significant profit.

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Disciplinary and Legal Measures

In response to the findings, Binance Wallet immediately suspended the employee in question and is considering further disciplinary action. The company also expressed its readiness to cooperate with authorities in relevant jurisdictions to take necessary legal action.

Although the identity of the employee was not officially announced, discussions on social media platform X pointed to a former operations manager at BNB Chain, Freddie Ng, who according to his LinkedIn profile joined the Binance Wallet business development team the previous month.

Appreciation of Whistleblowers and Implications for Industry

Binance Wallet appreciates the public’s efforts in bringing these alleged violations to light and affirms its commitment to protecting the interests of whistleblowers. The company announced that it will provide a total of $100,000 which will be divided evenly among the four anonymous whistleblowers who submitted reports via the whistleblowing email.

This case highlights the importance of transparency and adherence to ethics in the rapidly growing cryptocurrency industry. Insider trading is not only detrimental to market integrity but can also reduce investor confidence in digital asset trading platforms.

Conclusion

Binance’s decisive action in response to allegations of insider trading reflects the company’s commitment to maintaining integrity and trust in the cryptocurrency ecosystem. This case serves as a reminder to all industry players of the importance of maintaining ethical standards and transparency in their operations.

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This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Jesse Coghlan. Binance suspends staffer after internal investigation into insider trading. Accessed March 26, 2025.
• Featured Image: Generated by AI