Binance Wallet Suspends Employee After $113K Insider Trading

Two days ago, word spread that a Binance Wallet employee conducted an insider trade that netted them around $113,000 in profit. Following a two-day internal investigation, Binance suspended the staff and will take legal action applicable in the employee’s jurisdiction.

Despite the crypto exchange’s disciplinary actions, various community members on X allege that other employees are also guilty of insider trading.

How It Happened

On March 23rd, X user Pycharts disclosed four screenshots proving that a Binance Wallet staff member executed a series of transactions to accumulate a cryptocurrency called U DEX Platform (UUU) ahead of its token generation event (TGE). Pycharts tagged a Binance employee with the X handle, Freddie Ng, as the malicious employee.

4 photos to show you all that you should clean your wallets don’t get caught lackinghttps://t.co/54Q7PvnRFd pic.twitter.com/dz7s1w0F86

— py (@pycharts) March 23, 2025

Although Pycharts was likely the first to spot the issue on X, he likely did not report the matter to Binance’s official whistleblowing channel. In its announcement, Binance revealed that four users reported the matter to the appropriate channel and that these would share a reward of $100,000. Because Pycharts was likely not among these four, various community members frowned at the exchange’s reward process for the whistleblowers.

After receiving the insider trading report, Binance’s Internal Audit team commenced an investigation. Without revealing the identity of the employee in question, the crypto exchange explained that the individual had joined the Binance Wallet team only a month ago. This crew had no business dealings with the crypto project, the U DEX Platform.

The malicious staff member previously worked under BNB Chain’s business development. So, the employee used insider information from his previous position and “his familiarity with on-chain projects” to facilitate the insider trade.

Summing up the investigative report on the incident, the team wrote:

“This behavior constitutes front-running based on non-public information obtained from his previous role and is a clear breach of company policy.”

More Insider Trade Misconducts

Insider trading is an act in which an individual buys or sells a digital asset based on non-public information. Such information may be obtained from an employee who works or previously worked with a crypto exchange. In Binance’s case, the staff member executed the insider trade using information he got from his previous role.

Notably, insider trading is a punishable offense in various countries. Therefore, it is no surprise that popular YouTuber Mr. Beast was investigated for $23 million fraud involving insider trading and other illegal means.