🛃 Binance has temporarily suspended a member of the Binance Wallet team and is considering further legal action following an internal investigation into allegations of insider trading.
🛅 The Binance Wallet team launched an investigation on March 23 after receiving “a complaint that an employee engaged in front-running trades using insider information to gain undue profits,” the company said in a statement on its social media platform X.
🛂 A preliminary investigation has found that the Binance Wallet employee, who joined the team last month, allegedly used information from a previous position in the BNB Chain business development department to front-run the project’s tokens. “The employee knew that the project was planning a token generation event (TGE) and foresaw that it would generate significant community interest,” Binance Wallet said.
🚰 The company claims that the employee “used multiple linked wallet addresses to purchase a large amount of the project’s tokens” before the token launch was publicly announced, and then “quickly sold some of his holdings after the announcement, making a significant profit.”
🛄 Binance Wallet accused the employee of front-running based on non-public information obtained in a previous position, which is a violation of company policy. The company added that the employee was “immediately suspended pending further disciplinary action,” and that it would cooperate with authorities in the relevant jurisdiction to take legal action.
🪙 The company did not name the employee, but noted that the investigation was initiated due to allegations circulating on the X network.
✖️ Several X users pointed the finger at former BNB Chain operations manager Freddie Ng, whose LinkedIn profile shows that he joined the Binance Wallet business development team last month.
✖️ As user X pointed out, one of the wallets that DEX Screener reported receiving $82,400 in profits from the U DEX Platform (UUU) token is a wallet that received UUU tokens from another wallet that was originally funded from the address “freddieng.bnb” — which Ng had previously posted on his X account.
⭕ Binance Wallet expressed gratitude for the community efforts to bring these cases to light, but said it would only reward those who sent in emails to the whistleblower service “to protect the interests of whistleblowers.”
💵 The company said it would pay out $100,000, split evenly among the four anonymous whistleblowers who reported the incident.
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