Binance Allegedly Overlooked Market Manipulation by DWF Labs
Binance’s surveillance team uncovered evidence of market manipulation by market maker DWF Labs, yet the cryptocurrency exchange’s management reportedly ignored these findings. This was reported by the Wall Street Journal, citing sources.
According to the publication, DWF Labs’ fictitious trading was identified during an internal investigation using proprietary software tools. When the evidence was presented to the exchange’s management, the head of the surveillance department was dismissed.
Sources claim that Binance disregarded and ignored evidence of market manipulation, particularly related to inflating trading volumes of the YGG token and at least six other coins. They allege this brought the company over $300 million.
DWF Labs described the accusations as unfounded and distorting the facts.
To our valued partners: We want to clarify that many recent allegations reported in the press are unfounded and distort the facts.
DWF Labs operates with the highest standards of integrity, transparency, and ethics, and we remain committed to supporting you and our over 700… pic.twitter.com/aydp1hoham
— DWF Labs (@DWFLabs) May 9, 2024
In a comment on the article, Binance stated its strict adherence to market oversight and prevention of abuses. According to provided statistics, over the past three years, the exchange has offboarded approximately 355,000 users with transaction volumes exceeding $2.5 trillion for violating terms of use.
In response to WSJ, we affirm our strict market surveillance program. We do not tolerate market abuse.
Over the last three years, we have offboarded nearly 355,000 users with a transaction volume of more than $2.5 trillion for violating our terms of use.
Market maker…
— Binance (@binance) May 9, 2024
“Our investigative team’s task is to remain neutral and consider evidence without any bias, including that which may be caused by market makers’ claims against their competitors. We strive to ensure healthy competition in the industry and always fight to protect our users from market manipulation,” added Binance representatives.
Back in April 2023, the market maker faced suspicions of dumping tokens from its portfolio projects worth at least $65 million.
Andrei Grachev is the managing partner of DWF Labs. Since 2018, the community has accused him of various cryptocurrency frauds, including raising funds for an ICO for a project that was never launched, unprofitable investment portfolio management, and his connection to OneCoin—a $4 billion cryptocurrency pyramid scheme.
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