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Binance Cracks Down on Insider Trading with $2 Million Frozen in Suspicious Crypto Address

Binance Cracks Down on Insider Trading with $2 Million Frozen in Suspicious Crypto Address

The CEO of Binance, Changpeng 'CZ' Zhao, has confirmed that the exchange has frozen $2 million concerning a crypto address associated with an alleged insider trader.

FatMan Terra made the allegations in a series of tweets on March 28. FatMan Terra claimed that an anonymous individual had front-run several Binance altcoin listings and made a seven-figure profit.

In response to FatMan Terra’s tweet, CZ stated that Binance had frozen the funds before the Twitter thread was posted.

The exchange is committed to fighting potential leaks and welcomes any reports of such activity in the future.

The crypto influencer used on-chain data to describe the trader’s activities and how they were uncovered.

FatMan Terra also referred to a January report that cited 16 possible instances of insider trading on Binance, which generated a total profit of $1.4 million.

READ MORE: Prominent Market Maker Boosts Crypto Holdings to Over $1.2 Billion

The trader’s identity remains unknown, but their trade pattern suggests that they have access to inside information about Binance listings.

Binance has an internal security team that monitors multiple platforms for possible employee trading activity and operates a zero-tolerance policy towards insider trading.

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.

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