Crypto exchange Binance and DWF Labs have responded to a recent report by the Wall Street Journal (WSJ) that accused them of market abuse. In the report, the WSJ alleged that Binance’s “VIP clients” were involved in wash trading and market manipulation, with a monthly trading volume of $100 million. The WSJ claimed that these VIP clients accounted for two-thirds of Binance’s trading volume.
According to the WSJ, Binance established a surveillance team in 2022 to investigate these nefarious activities. The team reportedly recommended removing hundreds of users, including DWF Labs, a prominent crypto firm. The WSJ alleged that DWF Labs manipulated token prices, including Yield Guild Game (YGG), and engaged in $300 million worth of wash trading on Binance. The report further claimed that Binance did not take action on the findings but instead fired the head of the surveillance team, amid suspicions of collusion with DWF Labs’ competitors.
Binance has responded to these allegations with a post on its platform, affirming its zero tolerance for market abuse. The exchange stated that it has a strict market surveillance program in place and has taken measures to remove nearly 355,000 users who violated its terms, representing $2.5 trillion in trading volume over the past three years. Binance emphasized its commitment to fair competition and protecting its users from market manipulation.
DWF Labs also issued a response, dismissing the report as baseless and distorting facts. The company asserted that it operates with transparency, integrity, and ethical standards.
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