Binance, the world's largest cryptocurrency exchange, has suspended an employee for allegedly using inside information to profit from the launch of a token project.
Binance Fires Employee Over Insider Trading Allegations
In a statement published on X (formerly Twitter) today, Binance revealed that a staff member from its Wallet team purchased a large amount of tokens ahead of the Token Generation Event (TGE) and later sold some of his holdings to make a significant profit.
According to Binance, the employee clearly violated company policy by using non-public information obtained from his previous business development role at BNB Chain.
The exchange explained that the Wallet team did not have direct access to specific project details, which amounted to misuse of privileged information from its previous position.
“This behavior constitutes premeditation based on non-public information obtained from a previous position and is a clear violation of company policy,” Binance said. “As a result, the employee in question has been suspended with immediate effect pending further disciplinary action.”
Alleged Token and Investigation
While Binance did not disclose the token in question, community members on X quickly pointed to UUU (U DEX Platform), a Binance Smart Chain memecoin.
An X user, @pycharts, shared a wallet transaction screenshot showing the sale of over 6 million UUU tokens at around 7 a.m. on March 23, triggering a significant price drop.
The screenshot attributes the wallet to Freddie Ng, a member of Binance Wallet's BD and Growth team.
In response to these allegations, Binance’s official Chinese X account acknowledged the community’s concerns and stated that an internal investigation is currently ongoing.
The exchange pledged to make the findings public once the investigation is complete.
*This is not investment advice.
