WSJ Exposes Binance’s Tolerance of DWF Price Manipulation; Binance: Market Surveillance Plan Will Not Allow Such Occurrences
The recent controversy surrounding DWF Labs has escalated, as they vehemently deny engaging in a $300 million money laundering transaction on the Binance exchange in 2023. DWF Labs responded to these allegations, claiming that they misinterpret their ethical business standards.
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WSJ Report: Binance Found Evidence of Market Manipulation by DWF Labs
Binance’s Position on Market Surveillance
According to The Wall Street Journal
, sources have indicated that Binance discovered evidence of market manipulation after hiring a team of top investigators in 2022. Binance’s investigative team recommended the expulsion of hundreds of users, including market maker DWF Labs, for alleged manipulation of the YGG token and other assets due to violations of the terms of use.
Despite these findings, Binance questioned the rigor of its surveillance team’s investigation. After an internal review lasting a week, Binance dismissed the head of the surveillance team and decided not to ban DWF Labs.
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Binance Spokesperson
Clarifies
the exchange’s position on market surveillance.
“Binance strongly denies any claims that its market surveillance program allows for market manipulation on our platform. We have a robust market surveillance framework in place to identify market abuse and take action. Any users found to be in violation of our terms of use are delisted; we do not tolerate market abuse.
In the past three years, we have closed nearly 355,000 users for violating our terms of use, with a trading volume exceeding $2.5 trillion.
We have 190 million users. They can rest assured that we do not favor any individual users, regardless of their scale, for the sake of platform security. In other words, these are not decisions we make lightly. We conduct thorough investigations using multiple tools and only delist users when there is sufficient evidence to prove their violation of our terms of use.
A recent independent investigation conducted by Inca Digital into Binance’s market surveillance practices validated the effectiveness of our methods, finding ‘the minimum trace of abnormal trading activity.'”
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Founder He Yi also stated that this is likely a case of malicious competition among market makers and emphasized Binance’s strict market surveillance.
In the evolving landscape of transparency and fairness in cryptocurrency trading, the situation between DWF Labs, Binance, and the regulatory bodies overseeing them continues to attract attention from the market and participants.
DWF
WSJ
Market Surveillance
Binance
Further Reading
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