Binance Wallet said an investigation found a former employee leveraged information from their previous role at BNB Chain for front-running trades.
Employee Profits Using Non-Public Information
Binance Wallet has stated that none of its current team members were involved in insider trading, as alleged in a complaint filed with Binance’s internal audit team. However, an investigation following the complaint determined that an employee may have leveraged information from their previous position at BNB Chain to engage in front-running trades.
In a statement shared on the social media platform X, Binance Wallet confirmed that the employee had indeed used their knowledge in violation of company policy. According to the statement, the employee used multiple linked wallet addresses to purchase a large volume of the project’s tokens. Immediately after the official launch of the token sale, the employee sold some of the tokens, realizing “significant gains.”
As per a post on X by Wu Blockchain, the Binance Wallet employee identified as Freddie Ng realized a profit of $113,000 after selling 6.0222 million UUU tokens. The post stated that Ng had spent $6,227 to purchase 24.1 million UUU tokens, accounting for 2.4% of the total supply.
Following the investigation, Binance Wallet said it immediately suspended the employee and is seeking to take legal action.
“We will proactively cooperate with the relevant authorities in the employee’s jurisdiction and take appropriate legal action in accordance with applicable laws. Any associated assets will be handled in full compliance with applicable laws and regulations,” the statement said.
Binance Wallet announced it will continue to strengthen internal controls and refine its policies to prevent similar incidents. It also revealed that whistleblowers who submitted valid reports via the official channel would be entitled to a share of a $100,000 reward.
Source: Bitcoin
