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Mustafa Mulla
Mustafa Mulla
Author
Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.
- Mar 25, 2025 05:51 UTC
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Binance Employee Caught in Insider Trading Scandal – Massive Profits Exposed
Binance suspends employee for using insider information to profit from token launch.
Investigation reveals the employee used multiple wallets to buy tokens before launch.
Four whistleblowers received a $100,000 reward for reporting the misconduct.
Binance, the world’s largest cryptocurrency exchange, has suspended an employee over alleged insider trading – and the details are raising eyebrows. The employee reportedly used confidential information from their previous role at BNB Chain to buy tokens before a public announcement, then sold some after the launch for a hefty profit.
But how did Binance catch them? And what actions is the company taking to prevent this from happening again? Here’s what we know so far.
Binance Launches Investigation
The issue came to light on March 23 after Binance received complaints, leading to an internal investigation. The findings showed that the employee had used multiple wallet addresses to buy tokens before the official Token Generation Event (TGE) was announced.
Once the project became public, they sold part of their holdings while keeping the rest for future gains.
Jumping Into Action
Binance has not revealed the employee’s identity but confirmed their immediate suspension. The company also said it is working with legal authorities to ensure proper action is taken.
To encourage transparency, Binance rewarded four whistleblowers with $100,000 for reporting the misconduct through its official channels.
Suspect Wallet Linked to Binance Employee
In a separate report, Wu Blockchain revealed that a suspected Binance employee, allegedly linked to a wallet under the name Freddie Ng, made $113,000 in profits by trading UUU tokens on Binance Smart Chain (BSC).
The wallet originally spent $6,227 to buy 24.1 million UUU tokens. Later, 6.02 million tokens were sold, generating a large return. The remaining 18.09 million tokens, now worth around $200,000, are spread across nine different wallet addresses.
Binance’s Strict Action Against Misconduct
Binance reaffirmed its commitment to fair and transparent trading, stating it will fully cooperate with authorities and take legal action against those involved in insider trading.
This isn’t the first time a major crypto exchange has faced such an issue. Last year, a former Coinbase manager admitted to leaking confidential token-listing information for personal profit.
To prevent such incidents, Binance offers bounties of up to $10,000 to employees who report insider trading or information leaks within the company.
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Crypto may be decentralized, but bad actors still get caught. With Binance cracking down, the message is clear: play dirty, and you’ll pay the price.
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