Binance Employee Caught in Insider Trading Scandal – Massive Profits Exposed
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Binance, the world’s largest cryptocurrency exchange, has taken strict action against one of its employees for alleged insider trading violations. According to an official tweet post by Binance, the employee used confidential information from their previous role at BNB Chain to purchase tokens before a public announcement. Shortly after the launch, they sold a portion of the tokens, securing significant profits.
Binance Employee Tied Of Insider Trading
The allegations surfaced when Binance received complaints on March 23, prompting an internal investigation. The findings revealed that the employee had used multiple wallet addresses to buy tokens before any official Token Generation Event (TGE) was announced.
Once the project went public, the employee sold a part of their holdings while keeping the rest for potential future gains.
Although Binance has not disclosed the employee’s name, it confirmed that they have been suspended immediately. The exchange also stated that it is working with legal authorities to ensure necessary actions are taken.
As part of its efforts to maintain integrity, Binance rewarded four whistleblowers with $100,000 for reporting the misconduct through its official channel.
Suspected Wallet Linked to $200k In Profit
In a separate tweet post, Wu Blockchain reported that a suspected Binance employee, allegedly linked to a wallet under the name Freddie Ng, made a profit of $113,000 by trading UUU tokens on Binance Smart Chain (BSC).
The wallet, which initially spent $6,227 to buy 24.1 million UUU tokens, later sold 6.02 million tokens, generating substantial returns. The remaining 18.09 million tokens, valued at around $200,000, are still distributed across nine different wallet addresses.
Binance’s Strict Action Against Misconduct
Binance has ensured its commitment to maintaining transparency and fairness in crypto trading. The company noted that it will fully cooperate with authorities and take legal measures against those found guilty of insider trading.
This isn’t the first time a major exchange has faced such an issue. Last year, a former Coinbase manager admitted to leaking confidential token-listing information for personal gain.
Binance, however, remains proactive, offering bounties of up to $10,000 to employees who report insider trading or information leaks within the company.
