Remembered for his role in the Terra (LUNA) crash last May, the crypto money analyst named FatMan made statements about an insider on Binance this time.
FatMan made some surprising statements about an insider who allegedly ran a covert operation to predict the listing pumps of multiple altcoins on the Binance exchange, making a net profit of around $1.4 million.
Analyst Reports Insider Earning A Lot Of Profits With Listings On Binance
According to FatMan, the anonymous insider used two wallets, 0xd23 and 0x51, to make predetermined trades just days before Binance listed the respective coins. First, the insider funded the 0xd23 wallet with $53,000 and immediately began buying FXS on Uniswap in smaller batches for six days to avoid detection.
Three days after Insider's last FXS purchase, Binance listed FXS, causing a massive price spike. Insider then sold all their FXS on an exchange, making a huge profit at the expense of honest market traders who did not have the same knowledge advantage.
In the second example, the insider bought 131 ETH of TVK for two days just before listing the Binance coin using the 0x51 wallet. During the pump that followed, Insider sold TVK coins and cashed out 277 ETH without needing to touch a centralized exchange.
FatMan claims that this research has gone unnoticed and should be further publicized for market awareness, as insider trading can cause profitable trades to become unprofitable, causing individual investors to suffer losses.
The relationship between Binance and the insider is unknown, but FatMan claims it is clear that this person knew about Binance listings a few days in advance. He also states that the insider does not hide their tracks well, making it easier for the security forces to take quick action against them.
Thank you for pointing this out. We had frozen $2m associated with the address in question before your thread (and they never asked to re-claim). We are also always fighting potential leaks, etc. We welcome you to point them out in the future too. Helps all of us.
— CZ 🔶 Binance (@cz_binance) March 29, 2023
On the subject, a statement came from Binance CEO Changpeng Zhao, and it was reported that the Binance account of the person in question was frozen:
“Thank you for pointing this out. Prior to your post, we froze the $2 million associated with that address (and they never asked for repayment). Also always with potential leaks etc. we are fighting. We welcome you to mention these in the future as well. This helps us all.”
*Not investment advice.