Binance Reports Insider Trading by Employee, Implements Immediate Suspension and Legal Actions

By Cheryl L.

On March 25, Binance issued an official announcement regarding allegations of insider trading within the company. According to the report, Binance's internal audit team received a whistleblower complaint on March 23, 2025, accusing an employee of engaging in "front-running" trades to gain illicit profits. Binance immediately launched a full-scale internal investigation and has now released its preliminary findings.

Investigation Findings

• No Insider Trading Involvement from Binance Wallet Team The implicated employee was part of the Binance Wallet team at the time of the incident. Binance clarified that the Wallet team had no business dealings or collaborations with the relevant project and had no access to any non-public information.

• Misuse of Information from a Previous Role The employee had transferred to the Wallet team from a business development role at BNB Chain just one month prior. In the previous role, the employee was familiar with on-chain projects and knew of a specific project planning a token generation event (TGE), which was expected to attract significant community attention.

• Violation of Company Policy Before the project's token issuance was officially announced, the employee purchased a large number of tokens using multiple linked wallet addresses. After the announcement, they sold part of their holdings for profit while retaining the remaining tokens, which still hold substantial unrealized gains. This conduct was deemed a clear violation of Binance’s policies against insider trading.

Disciplinary Actions

• Immediate Suspension: The implicated employee has been suspended and will face further disciplinary measures.

• Legal Action: Binance will cooperate with relevant authorities in the employee's jurisdiction and take appropriate legal action under applicable laws. Any related assets will be handled in full compliance with legal regulations.

Whistleblower Rewards

To honor the contributions of whistleblowers, Binance has verified and processed the reports and will distribute the promised $100,000 reward equally among the following whistleblowers: f****o@g****.com, r****d@g****.com, 7****a@g****.com, 4****9@q****.com. While Binance appreciates information shared on platforms like X (formerly Twitter), rewards are only eligible for valid reports submitted via official channels (audit@binance.com) to protect whistleblower interests.

Background and Market Implications

On March 23, crypto influencers @0xJamesXXX and @BroLeonAus shared an analysis on X, alleging that a wallet address profiting over $110,000 from dumping $UUU tokens belonged to Freddie, an employee in Binance Wallet's BD & Growth Department. As of the tweets’ publication, Freddie had liquidated 25% of their holdings and transferred the remaining tokens, worth tens of thousands of dollars, to eight different wallet addresses.

These posts quickly gained traction in the crypto community, sparking debates on insider trading and ethical practices at major exchanges. Many users criticized the alleged misconduct, calling for stricter oversight and better internal controls at Binance. The incident also reignited discussions on token issuance transparency and the role of employees in ensuring fair trading.

Binance Reaffirms Commitment to Integrity

In its investigation report, Binance reiterated its zero-tolerance policy for misconduct and emphasized its commitment to transparency, fairness, and integrity. The company encouraged community oversight and urged anyone with valid information to report via its official channel (audit@binance.com).

“At Binance, we uphold a user-first principle and are committed to transparency, fairness, and integrity. We have zero tolerance for any misconduct. We will continue strengthening internal controls, refining our policies, and ensuring incidents like this do not recur,” Binance stated.