Binance Suspends Wallet Team Member Over Insider Trading Allegations Tied to Token Launch

The issue surfaced after the Binance Wallet team received a complaint suggesting one of its employees profited from non-public information.

Binance has suspended a member of its wallet division following allegations of insider trading tied to a recent token launch, the exchange confirmed in a statement on X.

The issue surfaced after the Binance Wallet team received a complaint suggesting one of its employees profited from non-public information.

According to Binance, a preliminary internal review found that the staffer — who joined the wallet team last month — used prior knowledge from a former business development role at BNB Chain to front-run trades.

The employee allegedly knew about an upcoming Token Generation Event (TGE) for an unnamed project and expected heavy interest once the news went public.

Before the announcement, they reportedly used several linked wallets to buy large amounts of the project’s token, and then offloaded some of the holdings immediately after launch to lock in profits.

While Binance hasn’t named the staffer, online speculation quickly went on to identify the employee as Freddie Ng, a former BNB Chain operations manager who joined Binance Wallet in February.

Several X users, including “py,” linked wallets tied to Ng’s online identity to one that profited over $82,000 trading the U DEX Platform (UUU) token — a project that surged to a $31.5 million valuation at its peak on March 23.

According to Binance, the employee was suspended and could face further disciplinary or legal consequences. The company also plans to work with regulators in the relevant jurisdiction.

“We appreciate community efforts in bringing this to our attention. However, to protect whistleblowers, only those who report through our official channel will be eligible for rewards,” Binance Wallet added.

Four anonymous users who flagged the issue through the company’s whistleblowing email will each receive a $25,000 reward.

The incident adds to growing scrutiny over insider activity in crypto markets, especially around token launches — where even short-term trades can bring huge profits to those with early access to information.

In February, blockchain analytics platform Bubblemaps claimed that a pseudonymous crypto trader known as Naseem made over $100 million trading the Trump memecoin.

According to Bubblemaps’ investigation, Naseem was able to “snipe” TRUMP tokens just after launch, securing $1.09 million worth using an address beginning 6QSc2. The funds were then spread across at least nine wallets, raising suspicions of coordinated trading.

According to Bubblemaps, Naseem is a highly skilled sniper trader with a history of profiting from newly launched tokens. Past trades included $1 million from Hailey Welch’s HAWK token and decent gains from LIBRA, the controversial token linked to Argentinian President Javier Milei.