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Binance Suspends Employee for Insider Trading, Aims to Enhance Transparency and Internal Controls
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Binance has taken decisive action against internal misconduct, suspending an employee for profiting from insider information about token launches.
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This incident underscores the importance of ethical standards in the cryptocurrency industry as regulatory scrutiny continues to grow.
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“This behavior constitutes front-running based on non-public information obtained from his previous role and is a clear breach of company policy,” a Binance Wallet statement emphasized.
Binance suspends an employee for insider trading, highlighting growing scrutiny in the crypto industry and the company’s commitment to transparency.
Insider Trading at Binance: Employee Suspended Following Probe
According to Binance Wallet’s statement, the investigation was triggered by a complaint received by its internal audit team on March 23. A related post by Wu Blockchain on the same date provided further details about the accused person. The investigation uncovered that a Binance Wallet employee, Freddie Ng, allegedly profited by approximately $113,600 through unethical trading practices.
Details reveal that Ng purchased 24.1 million UUU tokens for about $6,227, utilizing insider knowledge from previous employment. This insider knowledge derived from involvement in the BNB Chain allowed Ng to leverage information about a Token Generation Event (TGE), which significantly impacted the value of the UUU tokens post-launch.
After the project’s official token launch, the employee successfully liquidated approximately 6.0222 million tokens, securing hefty profits. The remaining tokens are held across multiple addresses, representing further unrealized gains of around $200,000.
This incident reflects poorly on the integrity of trading practices within the crypto space, although Binance has assured that this appears to be an isolated issue rather than indicative of broader systemic failures within the organization.