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 Editor-in-Chief of Coinspress and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
