Written by ChandlerZ, Foresight News

On March 24, according to Binance's official announcement, its internal audit team received a report on March 23, 2025, accusing an employee of using insider information to conduct front-running transactions to obtain improper profits. Binance launches a comprehensive internal investigation.

At the time of the alleged incident, the person was working within the Binance Wallet team, which had no business relationship or cooperation with the project involved. But he was suspected of abuse of previous job information for personal gain, and the employee held a business development position at BNB Chain before joining the wallet team a month ago. Thus, using the information you obtained in your previous position and your familiarity with the on-chain project, knowing that the project is being TGE, and purchasing a large number of project tokens using multiple link wallet addresses before the project publicly released its token announcement. After the announcement was released, the employee quickly sold part of his tokens and made a lot of profits, while the remaining tokens retained considerable unrealized income. Based on the non-public information obtained from his previous position, this behavior constitutes a preemptive transaction and is clearly in violation of the company.

The preliminary investigation has been completed, and the person involved has been suspended and will face legal accountability. Additionally, Binance has completed reporting verification and deduplication efforts and distributed $100,000 rewards evenly to the whistleblower.

According to X user @天天天天 BroLeon, Binance employee Freddie Ng was accused of suspected illegal insider trading and participated in UUU token trading to arbitrage of US$110,000. After he disclosed the information on the chain, he asked Binance to give a reasonable explanation for the matter.

BroLeon said, "The UUU token's rat trading was confirmed! I just verified this report, and the whole process of stealing chicken was exposed on the chain. I don't know what the Binance Wallet BD and the growth employee Freddie Ng will be dealt with."

According to the entire crime process, Binance employee named Freddie Ng must have known in advance that the UUU tokens should be pulled. He spent 10 BNBs to buy at an average price of 0.00026 US dollars with his own small account 0xEDb0.24.1 million pieces were worth $312,000, and all were transferred to the 0x44a wallet.

Freddie then sold 6.02 million UUUs at an average price of $0.0188 through the Bitget wallet, earning $113,600, and bulking the remaining UUU tokens to 8 different addresses, each ranging from tens of thousands of dollars.

BroLeon said, "What this guy is secretly secret is that the wallet he bought in the mouse dealer was the money he transferred in with his real-name wallet freddieng.bnb (starting from 0x77C) 121 days ago." On March 23, BNB Chain trading platform uDex officially launched the official token UUU on four.meme. uDEX is one of the eighth members of BNBChain MVB, which provides users with on-chain information and allows users to trade directly from social networks. Currently, the token has a market capitalization of $8.22 million.

Insider trading is not a problem unique to the cryptocurrency market. Taking the Securities and Exchange Commission (SEC) data for previous years as an example, insider trading-related law enforcement cases account for an average of 8-9% of the total annual law enforcement, a proportion that already exists in traditional financial markets.

This is not the first time that Binance has faced insider trading doubts, but few employees have been dealt with inquiry before. Since 2018, the cryptocurrency industry has continued to have systemic doubts about internal trading on trading platforms. Many exchanges have been accused of having similar rat-holding problems at different times, which has become a stubborn problem in the industry.

The transparency and decentralized characteristics of the cryptocurrency market have not completely eliminated the risks of insider trading. Instead, due to the lack of unified supervision and imperfect internal control, trading platforms are prone to become a breeding ground for such behaviors. Although major exchanges have strengthened the construction of compliance and risk control systems, the anonymity, technical complexity and global operation model of cryptocurrencies still face considerable challenges in implementation.

Industry giants such as Binance often show a strong deterrent effect when facing the abuse of internal transactions, but they often cause similar incidents to occur frequently due to the lack of effective prevention and monitoring measures. In addition, Binance's rapid investigation results and actions show its determination in rectification, but whether it can completely eliminate the problem of rat trading still needs to strengthen compliance management and transparency from the source within the industry.