Binance Denies Allegation Of Market Manipulation From DWF Labs
Binance is fighting back against the DWF Labs allegation against the platform on May 9. This follows an explosive report from the Wall Street Journal (WSJ) that revealed that Binance dismissed an employee who uncovered evidence of market manipulation by DWF Labs, a major market on the trading platform.
According to the WSJ report, the dismissed employee and his colleagues at Binance’s market surveillance team had identified instances of pump-and-dump schemes and wash trading conducted by “VIP” clients, including $300M by DWF Labs. These activities violated Binance’s terms and conditions.
The investigators recommended removing DWF Labs from the platform, which they accused of manipulating the price of several cryptos, including the YGG token.
Instead, Binance launched an inquiry into the team’s work, claiming there was insufficient evidence of wash trading by DWF Labs. According to the WSJ, the head of surveillance was fired afterward.
*Binance Fired Head of Surveillance After He Flagged DWF's Suspected Market Manipulation, Sources Say — WSJ
— Tree News (@News_Of_Alpha) May 9, 2024
DWF Labs, an investor in crypto projects that gained prominence in 2023, was reportedly involved in trades of over $4 billion monthly on the Binance platform.
In response to the allegations, Binance refuted the claims, asserting they do not tolerate market manipulation.
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
The exchange also revealed its successful record of removing high-profile traders who
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