The whole story of the Binance employee rat warehouse incident: how much is the improper profit? How to solve the case?
By ChandlerZ, Foresight News
On March 24, Binance's internal audit team received a report on March 23, 2025, alleging that an employee used inside information to conduct front-running to obtain improper gains. Binance launched a full internal investigation.
At the time of the alleged incident, this person was working within the Binance Wallet team, which did not have any business relationship or collaboration with the project in question. However, it is alleged that he misused his previous job information, and the employee worked in a business development role at BNB Chain before joining the wallet team a month ago. Thus using the information he gained in his previous position and familiarity with the on-chain project, he knew that the project was at TGE, and purchased a large number of project tokens using multiple linked wallet addresses before the project publicly released the token announcement.
Following the announcement, the employee quickly sold some of his token holdings for a good profit, while the remaining tokens retained a significant amount of unrealised gains. Based on non-public information obtained from his previous position, this behaviour constitutes a front-running transaction and is a clear violation of company policy.
At present, the preliminary investigation has been concluded, and those involved have been suspended from their duties and will face legal accountability. In addition, Binance has completed the verification and deduplication of the whistleblower and distributed the $100,000 reward equally among the whistleblowers.
On-chain evidence caught the "rat's tail"
According to the exposure of X user @土澳大lionbrother BroLeon, Binance employee Freddie Ng was accused of illegal insider trading and participating in UUU token trading arbitrage of $110,000. After he made the on-chain information public, he asked Binance to give a reasonable explanation for the matter.
BroLeon said, "The UUU token rat warehouse has been hammered! I just verified this report, and the whole process of stealing chickens was picked up on the chain, and I don't know what will happen to the Binance wallet BD and growth employee Freddie Ng who were caught in the rat warehouse this time."
According to the entire process of combing, the Binance employee named Freddie Ng must have known in advance that the UUU token was going to be pulled, and used his small 0xEDb0 account to spend 10 BNB to buy 24.1 million tokens at an average price of $0.00026, worth $312,000, and transferred all of them to the wallet starting with 0x44a.
Subsequently, Freddie sold 6.02 million UUUs at an average price of $0.0188 through the Bitget wallet for $113,600, and bulk the remaining UUU tokens to 8 different addresses, ranging from tens of thousands of dollars each.