Binance Announces Investigation into Employee Misconduct
Binance today issued a statement confirming that an employee utilized non-public insider information obtained during their previous role in BNB Chain business development to conduct “front-running” trades. Binance will cooperate with judicial investigations and has awarded a total of $100,000 to four whistleblowers.
(Background: Meme coins WHY and CHEEMS saw a “flash crash” after being listed on Binance, prompting major holders to urge: Please slow down the sell-off from the mouse accounts.)
(Context: Debunking mouse accounts! Binance’s CMO says: No meme coins are guaranteed to be listed! Utility is the key to review.)
Investigation and Employee Suspension
The Binance Wallet division of the world’s largest cryptocurrency exchange, Binance, announced today (25th) that a team employee has been suspended due to allegations of insider trading. The company will cooperate with judicial authorities for accountability and has awarded a total of $100,000 to four whistleblowing users.
Binance’s internal audit team initiated an investigation immediately after receiving a report on March 23. Preliminary findings indicated that the employee in question, who is suspected of engaging in “mouse account” activities, exploited non-public insider information from their previous role in BNB Chain business development to purchase a substantial amount of tokens from a project using multiple associated wallets before the project’s public Token Generation Event (TGE), and subsequently sold part of these tokens for significant profit after the news release, while retaining a considerable amount of unrealized gains. This behavior constitutes a typical case of “front-running” and is a serious violation of the company’s internal policies.
Binance Wallet emphasized that there is no insider trading related to the Binance Wallet team, and while the employee was indeed working within the Binance Wallet team at the time of the alleged incident, the Binance Wallet team had no business relationship or cooperation with the involved project.
Suspected Project: UUU
Currently, Binance has not disclosed the specific name of the project involved. However, prior to the exposure of the incident, the crypto community discovered that Binance Wallet employee Freddie Ng was suspected of “mouse account” activities, having realized a profit of $113,000 while still holding $200,000 in unrealized profits, which raised questions and criticisms within the community; it is possible that the token in question is UUU.
An address associated with Freddie Ng (freddieng.bnb) transferred funds to an address starting with 0xED. Before the UUU token was launched on the BSC chain, this address purchased 24.1 million UUU tokens at an average price of $0.00026 using 10 BNB, accounting for approximately 2.41% of the total supply. Subsequently, this address transferred all tokens to another address (0x44…8870) and sold 6.022 million UUU tokens at a price of $0.01884, realizing a profit of $113,000, which caused the price of UUU to plummet over 24% within one minute. The address starting with 0x44 still holds 2.903 million UUU tokens and has distributed 15.19 million tokens to eight addresses, with unrealized profits exceeding $200,000.
Currently, Binance has not stated whether the involved employee is indeed Freddie Ng, but given the timing of the investigation indicated in the Binance Wallet statement, the community generally believes that the subject of Binance’s investigation is the same individual. The project $UUU, which allegedly faced a sell-off from a mouse account, saw its price jump to $0.010482 within an hour after Binance issued a statement at 10 a.m. today, with a current price of $0.00966, marking an increase of over 11% in the past 24 hours; however, it has dropped nearly 70% from its historical high of $0.031928 reached on the 23rd.
Employee Suspension and Judicial Cooperation
Due to confirmed violations, Binance stated that the involved employee has been immediately suspended pending further disciplinary actions, and the company will actively cooperate with relevant authorities in the employee’s jurisdiction and will take appropriate legal action in accordance with applicable laws. Any related assets will be handled in full compliance with applicable laws and regulations.
Binance also expressed a “zero tolerance” policy towards any form of insider trading or violations and will continue to strengthen internal regulatory mechanisms, improve policies, and prevent such incidents from recurring, welcoming continued community oversight.
Finally, Binance has awarded a total of $100,000 to four users who reported through official channels, in recognition of their contributions to maintaining market fairness.
