Freddie Ng, a suspected Binance Wallet BD employee, is accused of insider trading with UUU tokens on the Binance Smart Chain. Freddie Ng realized a profit of $113k and an unrealized profit of $200k through trading the token. The situation has raised questions about the exchange’s internal controls and the potential for employees to exploit sensitive information for personal gain.
Insider Takes Advantage of Classified Information
The Binance employee made a series of trades that resulted in a significant profit. The trades were made when the employee gained access to sensitive information about upcoming listings and other market-moving events. He then funded his freddieng.bnb, 0xED…1F59 address, and spent $6,227 to purchase 24.1 million UUU tokens before the public launch, which amounts to 2.4% of the total supply.
Subsequently, 6.0222 million UUU tokens were sold through related addresses, yielding $113.6k. Currently, 18.095 million UUU tokens, valued at approximately $200k, are still held across 9 addresses. The incident has since raised concerns about the potential for insider trading and the need for stricter internal controls.
The insider trading incident ties to Binance’s history of regulatory scrutiny, including a 2023 U.S. investigation by the CFTC for market manipulation and a $4 billion settlement which led CZ to step down as CEO.
Binance Responds With Disciplinary Actions
In response to the incident, Binance has issued an official statement reaffirming its commitment to transparency and accountability. The exchange has pledged to conduct a thorough investigation into the matter and to take disciplinary action against any employees found to have engaged in insider trading or other unethical behavior.
Binance has also emphasized its dedication to maintaining the integrity of its platform and ensuring that all users have a fair and transparent trading experience.
Meanwhile, Binance has been making waves with several new developments. The platform has recently listed several new coins, including CoinoUSD, Formation Finance, BMChain, Epic Cash, and RedStone. The company has also launched Binance Alpha, a pre-listing platform that showcases early-stage crypto projects with high growth potential. The platform’s latest batch features six emerging blockchain projects.
In addition, Binance Launchpad, the platform’s Initial Exchange Offering (IEO) platform, has enabled users to invest in vetted crypto projects through secure token sales. Recent projects like VANA and SCR have raised millions through Launchpad. The exchange has also introduced a new feature called Seed Tag, which identifies early-stage, high-risk high-reward crypto projects with the potential for high volatility and returns.
