Binance suspended a member of its wallet team on Tuesday for insider trading after he was discovered leveraging information from his previous BNB Chain role to front-run an undisclosed token release.
An insider trading report shared by Binance revealed how the man, aware of an upcoming token-generation-event, bought large amounts of the token with multiple wallets, knowing it would make him a profit.
Binance was tipped off on March 23, and, after an investigation, suspended the individual and is taking “appropriate legal action.”
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Binance didn’t reveal their identity, but users on X appeared to reveal that the man is called Freddie Ng. One wallet shared by the user “py” on DEX Screener appears to show that Ng made $82,400 from at least one wallet involved in the insider trading of uDEX’s UUU token.
Binance also dropped the market maker associated with Movement Labs today after it sold 66 million MOVE tokens with little buy orders, making $38 million in the process. Movement Labs claims it will use the recovered funds to buy back the tokens.
According to crypto sleuth ZachXBT, an investor revealed that the market maker in question is Web3Port. He then recommended to “avoid doing business with them at all costs.”
Last week, Binance reportedly relaxed restrictions on employees short-term trading, allowing them to trade up to $5,000 worth of crypto with no minimum holding period.
Before this, staff were required to hold on to a token for at least three months before selling. The firm still actively discourages insider trading and has a whistleblower system in place, which awarded four whistleblowers $25,000 each for outing Ng.
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