Insider Trading at Binance

     Freddy Ng, a Binance Wallet Business Development (BD) employee, has been suspended following claims of insider trading with UUU tokens on the Binance Smart Chain. Binance has chosen to pursue legal action against Freddy Ng, as well as reward the whistleblowers who provided critical information regarding the incident.

What happened?

     Based on my DYOR, Freddy Ng bought a lot of UUU tokens before the public listing, using his work experience and privilege to access the exchange's private information. He then dumped the tokens as soon as their value rose following the listing. Freddy Ng had undoubtedly become wealthy, but the dumping had harmed the investor and developers.

What will happen now?

     To my knowledge, no exchange, including Binance, has publicly disclosed an insider trading occurrence. If Freddy Ng is prosecuted, he will be the first individual charged with insider trading in the cryptoverse. At the moment, Binance's move will not only induce fear of insider trading in the CEX employees, but will also push reward hunters to report such incidents.

Originally published on Wubits