On its official X channel, Binance Wallet recently announced disciplinary action against an employee caught using insider information for personal gain. This rare public acknowledgment of internal controversy demonstrates Binance’s commitment to transparency and decentralization.
Shocking internal scandal from Binance Wallet employee
Recently, according to the latest report from Wu Blockchain, the community has uncovered a suspected insider trading fraud involving a Binance Wallet employee. A suspected Binance Wallet BD employee, Freddie Ng, allegedly used insider information from his previous position to profit $113,600 by trading UUU tokens. Additionally, he secured an unrealized profit of another $200,000.
The detected wallet address received transfers from freddieng.bnb, after which it accumulated 2.4% of the total UUU supply with just over $6,000. As the UUU token experienced a significant pump, the wallet gradually offloaded its holdings, cashing out $100,000 while still holding 200,000 UUU in related wallets.
4 photos to show you all that you should clean your wallets don’t get caught lackinghttps://t.co/54Q7PvnRFd pic.twitter.com/dz7s1w0F86
— py (@pycharts) March 23, 2025
UUU is the native token of uDEX, part of the MVB 8 program. The community speculates that Binance Alpha will soon list UUU, and they believe Freddie Ng knew about it in advance, prompting him to engage in insider trading for illicit gains. Binance Alpha 2.0 has already surpassed $100 million in trading volume, with Mubarak, TUT, and Brocoli714 – all of which are memecoins included in the first batch of the “Vote to List” program – contributing 50% of the volume.
Learn more: Binance Alpha 2.0 Allows Users to Trade DEX Right On CEX
Rarely Binance’s responses?
Shortly after the scandal, Binance Wallet issued an official announcement on its X channel regarding the disciplinary action taken against the employee. Binance announced that this employee had been disciplined, immediately suspended, and may face further legal consequences depending on the laws of their country of residence.
Also, four individuals received the whistleblower reward of $100,000 for their contribution for detecting the crime. This action aligns with FinCEN’s AML program, which offers 10-30% of sanctions collected to encourage reporting of financial crimes.
Investigation Findings on Staff Misconduct in Trading
Dear Binance Users and Community Members,
On March 23, 2025, Binance’s Internal Audit team received a complaint alleging that one of our staff members engaged in front-running trades using insider information to gain… pic.twitter.com/SVVvu4rX1x
— Binance Wallet (@BinanceWallet) March 25, 2025
Binance Wallet said that this was an isolated case, with no other employees found violating regulations. The exchange emphasized its strong commitment to transparency and stated that it would not tolerate any form of misconduct.
Previously, Binance has faced legal scrutiny since 2018, with U.S. authorities charging the company and its former CEO Changpeng Zhao in 2023 for money laundering and compliance failures. With recent efforts, Binance would like to highlight ongoing transparency and integrity issues in the crypto exchange.
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