NAIROBI (Coinchapter.com) – Binance has issued a strong denial refuting allegations of market manipulation by DWF Labs, a major client. The allegations stem from a Wall Street Journal report alleging that Binance dismissed a market surveillance employee who uncovered evidence of illicit activity. The report further alleges that DWF Labs engaged in a pattern of wash trading that inflated prices.
According to the Wall Street Journal, the market surveillance team, tasked with identifying signs of market manipulation and other illicit activities as part of Binance’s compliance efforts, found that “VIP” clients trading over $100 million per month appeared to be engaging in activities prohibited by the exchange’s terms and conditions. DWF Labs, a prolific investor, reportedly conducted over $4 billion in monthly trades on Binance.
The investigators reportedly submitted evidence alleging DWF Labs manipulated prices of several tokens, including Yield Guild Game (YGG) and at least six others, through $300 million worth of wash trades in 2023. However, Binance determined there was insufficient proof of market abuse, according to the WSJ report.
In response to the allegations, Binance took to X to affirm its strict market surveillance program and refuting the claims, stating, “We do not tolerate market abuse.” The exchange further highlighted its commitment to maintaining a fair and competitive environment, offboarding nearly 355,000 users with a transaction volume of over $2.5 trillion for violating its terms of use over the past three years.
On the other hand, DWF Labs has refuted the allegations, asserting that many recent reports in the press are “unfounded and distort the facts.” In a statement, the firm maintained,
“DWF Labs operates with the highest standards of integrity, transparency, and ethics, and we remain committed to supporting you and our over 700 partners across the crypto ecosystem.”
This isn’t the first time DWF Labs has faced criticism. In September 2023, Wintermute, an algorithmic trading firm, accused DWF Labs of practices that “confuse users” and deviate from traditional market-making activities.
Eclipsing the trends of Ethereum and Toncoin, BlockDAG (BDAG) has quickly captured global attention with its dynamic…
International hedge fund Millennium Management has disclosed nearly $2 billion in spot Bitcoin ETF holdings…
Binance, the world’s largest cryptocurrency exchange, has developed a new algorithm to tackle "address poisoning."…
Venture capital firms invested more than $1.02 billion in the crypto sector in April, showing…
Thirteen years ago, Greg Schoen made a notorious decision. On May 17, 2011, he sold…
Reddit's stock RDDT jumped 15.90% in the week ending May 17, with investors picking their…