Binance has suspended an employee over allegations of insider trading tied to a new token launch. In a post published Tuesday on X, Binance said the employee—now part of its Wallet team, used privileged information gained during a previous role on the BNB Chain business development team to make unauthorized trades. The individual reportedly bought a large quantity of a token ahead of its official Token Generation Event (TGE) and then sold part of the holdings for a significant profit.
Binance clarified that the Wallet division does not typically have access to sensitive project details and that the information used was accessed through the employee’s former position.
“This behavior constitutes front-running based on non-public information obtained from his previous role and is a clear breach of company policy,” Binance said in its statement.
The employee was immediately suspended and now faces further disciplinary review.
Although Binance did not disclose which token was involved, blockchain sleuths on X have pointed to a memecoin called UUU—associated with the U DEX Platform on Binance Smart Chain—as the likely asset in question.
Preliminary Probe Reveals Multi-Wallet Front-Running Scheme
Binance’s internal investigation uncovered preliminary evidence that the suspended employee used multiple wallet addresses to accumulate tokens prior to a project’s official Token Generation Event (TGE), according to a statement released Tuesday. These actions were flagged following a wave of community complaints received on March 23.
Although the exchange has withheld the individual’s identity, the investigation reveals that the employee had only recently transitioned to Binance’s Wallet team after serving in a business development role at BNB Chain—the company’s broader blockchain ecosystem.
According to Binance, the individual sold a portion of the tokens immediately after the TGE announcement, securing “substantial profits,” while still holding the remainder of the stash with “notable unrealized gains.” The company classified this activity as front-running—an unethical practice in which individuals use insider, non-public information to trade ahead of major market events.
“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,” Binance affirmed.
Binance’s Commitment to Integrity
As part of its internal cleanup efforts, Binance confirmed it had distributed a $100,000 reward evenly among four whistleblowers who reported the misconduct through its official reporting system. The payout signals a strong commitment to internal accountability at a time when regulatory and public scrutiny over insider activity is rising across the crypto sector.
The move comes just weeks after Binance co-founder Yi He announced a company-wide bounty program, offering up to $10,000 to employees who report colleagues engaged in insider trading or the unauthorized leaking of sensitive corporate data. That policy now appears to be bearing fruit.
This latest episode also draws parallels with the 2023 insider trading case at Coinbase, where former product manager Ishan Wahi admitted to leaking confidential token listing details to his brother and a friend—resulting in criminal convictions and one of the industry’s most high-profile regulatory crackdowns involving insider trading.
For Binance, the whistleblower reward may help build confidence in the platform’s internal governance framework, as it seeks to reassure regulators and users alike that it’s willing to police its own ranks.
Quick Facts:
- Binance suspended a Wallet team employee for allegedly using insider knowledge from a previous role at BNB Chain to profit off a token launch.
- The individual reportedly front-ran a Token Generation Event by purchasing the asset early and selling for gains.
- Binance has rewarded four whistleblowers with a combined $100,000 for reporting the misconduct.
- The token in question is suspected to be UUU, a memecoin tied to the U DEX Platform on BNB Chain.
