Share this article
Binance has reportedly fired a member of its market surveillance team who found evidence of market manipulation by DWF Labs, one of the exchange's high-profile clients.
The Wall Street Journal reported that the fired employees and their colleagues had identified instances of pump-and-dump schemes and wash trading by “VIP” clients, including DWF Labs.
As part of Binance's efforts to improve its compliance practices, a market surveillance team hired to identify signs of market manipulation and other illegal activity is targeting “VIP” customers (customers who trade more than $100 million per month). ) were found to be engaged in activities. Prohibited by Binance's Terms of Service.
DWF Labs, a prolific investor in crypto projects that surfaced in early 2023, reportedly made more than $4 billion in monthly trades on the exchange.
Binance has denied allegations that it authorized market manipulation, saying it fired the employee after an investigation found the accusations against its customers were “completely unsubstantiated.”
“Binance categorically rejects any claims that its market surveillance program has authorized market manipulation on our platform,” a spokesperson for the exchange said.
DWF Labs also responded to the article, calling the allegations “baseless and distorting the facts.”
“We have discovered that a recent article contains a number of allegations that we believe are unsubstantiated and do not accurately represent our ethical business practices,” DWF Labs said via its Telegram channel. This was stated in a presentation.
Investigators filed a report alleging that DWF Labs manipulated the prices of multiple tokens through $300 million worth of wash trades in 2023. However, Binance determined that there was insufficient evidence of market abuse, the WSJ report said.
The specific token linked to the Web3 game, YGG, was named along with six other tokens. YGG is a token launched by Yield Guild Games, a Web3 company with major leadership from the Philippines, where Binance is currently banned.
Binance further claimed in a recent statement that it was “not aware” of the documents and would be “deeply concerned” if these allegations were proven to be true. The exchange's founder, Zhao Changpeng, was sentenced to four months in prison after the exchange became embroiled in a series of legal battles.
Share this article
