Binance Employee Caught Red-Handed: Insider Trading Scandal Exposed! 🕵️‍♂️💸

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Binance, the crypto giant, has suspended an employee after uncovering a scandal involving insider trading. This rare public disclosure has left the industry buzzing with gossip and raised eyebrows about the company’s internal controls. 🕵️‍♂️

The announcement, made on Monday via Binance Wallet’s X account, comes at a time when the crypto world is under intense scrutiny for its ethical practices. Or lack thereof. 🤷‍♂️

According to Binance Wallet’s statement, the investigation began on March 23 after a complaint landed on the desk of its internal audit team. A post by Wu Blockchain on the same day spilled the beans on the accused, Freddie Ng, who allegedly made a tidy profit of $113k and was sitting on an unrealized gain of $200k. Not bad for a day’s work, eh? 💰

“A suspected Binance Wallet BD employee, Freddie Ng, has realized a profit of $113k and an unrealized profit of $200k through trading UUU on the BSC,” the post read.

Apparently, Freddie funded an address with freddieng.bnb, bought 24.1 million UUU tokens for $6,227, and then sold 6.0222 million of them across related addresses. The result? A cool $113,600 in profit. The remaining 18.095 million tokens were still held across nine addresses, representing an unrealized profit of approximately $200,000. Not too shabby for someone who’s supposed to be working for the company, right? 😏

Binance Wallet’s investigation revealed that Freddie had previously worked in a business development role at BNB Chain. He allegedly used his expertise in on-chain projects and prior knowledge of a project’s Token Generation Event (TGE) to line his pockets. 🤑

Having joined the Wallet team just a month ago—a unit with no ties to the project—Freddie bought tokens via multiple wallets before the announcement. After the project’s official token launch announcement, he sold some for significant gains, retaining others with high unrealized value. Smooth move, Freddie. 🎩

“This behavior constitutes front-running based on non-public information obtained from his previous role and is a clear breach of company policy,” the statement noted.

Binance Wallet was quick to point out that this was an isolated case and that there’s no evidence of broader insider trading within its team. They suspended Freddie faster than you can say “crypto scandal” and pledged to cooperate with legal authorities. Transparency and fairness, they say, are their top priorities. Sure, sure. 🙄

“At Binance, we uphold a user-first principle and are committed to transparency, fairness, and integrity. We have zero tolerance for any misconduct. We will continue strengthening internal controls, refining our policies, and ensuring incidents like this do not recur,” they added.

To encourage community oversight, Binance awarded $100,000 to four whistleblowers who reported the issue through its official channel. A nice little bonus for doing the right thing. 🤑

Meanwhile, the incident has sparked broader discussions about ethical practices in the crypto industry. Colin Wu, founder of Wu Blockchain, highlighted the rarity of the situation.

“Binance seems to have disclosed details of employee insider trading for the first time,” he wrote.

Wu also pointed out that the discovery of the problem was largely dependent on rare on-chain and off-chain evidence. Without this evidence, the issue might have gone unnoticed or remained hidden. He also mentioned that Binance co-founder Yi He revealed in an AMA that the team had internally reviewed more than 120 individuals over the past two years, firing over 60 for violations. So, who knows how many other Freddies are out there? 🤔

Lastly, Wu noted that while Binance is known as one of the strictest exchanges in the industry, it’s unclear how other platforms compare in enforcing similar standards. In other words, the crypto world is still the Wild West, folks. 🤠

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2025-03-25 14:40