Binance suspends employee for insiders trading allegations
Binance suspended staff members after her investigation on receivables for insiders trading, she found that the employee used information from a previous role at front races.
According to a 25. Marta x PostBinance began to look at things 23. March after she received a complaint about suspicious trade activity related to recent launch of tokens.
The initial allegations suggested that the employee, who recently joined the Binance Wallet Team, may have used insider knowledge from the previous position on the BNB chain. Binance said the staff was aware that the project was preparing for the event generation of tokens and expected a strong interest of the community.
Using more connected wallets, the employee allegedly bought a large number of project tokens before public launch. After the announcement, they sold part of the farm for significant profits.
Binance said the staff member was suspended immediately after the findings and now faces further disciplinary measurements.
The exchange of cooperation with the authorities is further responsible and implemented by legal steps in accordance with applicable laws. Each assets related to the incident will be handled according to regulatory requirements.
Bynance did not appoint staff member, but said the investigation was launched by the allegations that appeared on X earlier this week.
Users on KS began marking suspicious wallet activity related to the former manager of BNB chain operations, Freddie NG, recently joined the Business Development Team of Binance. (See below.)
As per 23. Marta mail By the journalist Colin Vu, the wallet allegedly connected to Freddie NG was about 6,200 dollars for procuring 24.1 million tokens, or approximately 2.4% of the total offer, in front of the public launch of the tokens.
About 6 million tokens later sold through related bills, which generate over $ 113,000 in realized profit.
Cripto.news reached on NG for comment, but he was not heard at the time of publication.
Persistent problem in industry
The allegations of insiders are not new to the cry and remain a serious challenge for the industry built on transparency and decentralization.
Insider trading can seriously lack retail investors, they often take out potential winnings. Beyond individual losses, such practices can Market dynamics and undermin confidence in otherwise promising projects.
Similar cases, like 2022 Incident for coinbase Where the former Product Manager, Ishan Vahio leaked upcoming Token ads to his brother Nikhil Vahi and Friend SaMeer Ramani, show that even the main players are not immune to such misconduct.
Although such actions carry Serious legal consequencesThey still on the surface.
The binance itself is charged with insider trade repeatedly In the past. Last year, stock exchange launched Internal investigation of suspected trafficking in relation to Book Book Meme (Bome).
Earlier this year, an automated market manufacturer of Finance Airport suspended Two of her associates only a few hours after suspicious trading activities during the launch of VVV Token Venice.
These abuses are not limited to only trading platforms. Last year faced mystico network Insider trading stated During the second air after the chain data showed that millions of tokens are directed to newly reinforced wallets.
Recently, Libra, Meme, Promoted Argentine President Javier Miley, Polemino was loaded Reports alleged This insiders had a previous access to the token, which allowed them to profit over $ 110 million immediately after its startup.
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2025-03-25 11:29:00
