Binance fires investigator for exposing market manipulation with DWF Labs — WSJ
Share this article
Binance has reportedly fired a member of its market-surveillance team who uncovered evidence of market manipulation by DWF Labs, one of the exchange’s high-profile clients.
According to a Wall Street Journal report, the dismissed employee and his colleagues had identified instances of pump-and-dump schemes and wash trading by “VIP” clients, including DWF Labs.
The market-surveillance team, which was hired to identify signs of market manipulation and other illicit activities as part of Binance’s efforts to improve its compliance practices, found that “VIP” clients – those trading more than $100 million per month – were engaging in activities prohibited by Binance’s terms and conditions.
DWF Labs, a prolific investor in crypto projects that emerged in early 2023, was reportedly making over $4 billion in monthly trades on the exchange.
Binance has denied the claims, stating that it rejected allegations of permitting market manipulation and that the employee was dismissed after an inquiry found the accusations against the client were not “fully substantiated.”
“Binance emphatically rejects any assertion that its market surveillance program has permitted market manipulation on our platform,” a spokesperson from the exchange said.
DWF Labs also responded to the article, claiming that the allegations were “unfounded and distort the facts.”
“It has come to our attention that a recent article contains many allegations that we believe to be unfounded and that do not accurately represent our ethical business practices,” DWF Labs said in an announcement through its Telegram channel.
The investigators submitted a report alleging that DWF Labs had manipulated the prices of several tokens through $300 million worth of wash trades in 2023. However, Binance determined that there was insufficient evidence of market abuse, the WSJ report states.
A specific token linked to Web3 gaming, YGG, was named alongside six other tokens. YGG is a token launched by Yield Guild Games, a Web3 firm which has key leadership from the Philippines, where Binance is currently banned.
A recent statement from Binance further said that it was “unaware” of the documents, arguing that these allegations were “very concerning” if proven to be true. The exchange’s founder, Changpeng Zhao, has been sentenced to four months in prison after the exchange was embroiled in a series of legal battles.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
Crypto Briefing may augment articles with AI-generated content created by Crypto Briefing’s own proprietary AI platform. We use AI as a tool to deliver fast, valuable and actionable information without losing the insight – and oversight – of experienced crypto natives. All AI augmented content is carefully reviewed, including for factural accuracy, by our editors and writers, and always draws from multiple primary and secondary sources when available to create our stories and articles.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
