Binance Dismisses Claims of Facilitating Market Manipulation, Defends Surveillance Practices
Summary:
Binance, a leading cryptocurrency exchange, has refuted claims of $300 million worth of false trading by DWF Labs in 2023. An anonymous source had reported it to the Wall Street Journal. Binance's prioritizes investigating potential cases of market manipulation and has reportedly removed almost 355,000 users for violating their terms of use. Inca Digital's independent investigation confirmed the low level of abnormal trading activities on Binance. The founder of DWF Labs, Andrei Grachev, has firmly denied all allegations.
Binance has dismissed the newly resurfaced claims of market fiddling leveled by DWF Labs. An unidentified informant, alleging to be a prior employee of Binance, stated that Binance inspectors had detected $300 million worth of false trading by DWF in 2023, as reported by the WSJ on May 9. Binance, however, fully refutes these claims. As per a representative from Binance who spoke to Cointelegraph, any suggestion that their market monitoring process has allowed manipulation in the market via their platform is completely false. Their robust market monitoring system not only recognises but also takes steps to counteract market exploitation. They do not entertain any form of market exploitation and any user found to violate their terms of use will be removed.
The WSJ report suggests that last year, DWF Labs manipulated the price of the Yield Guild Game (YGG) token and at least six other cryptos. Binance, however, insists that such manipulation would be untenable under their surveillance program. Binance's representative added that over the past three years, they've removed almost 355,000 users who conducted transactions totaling over $2.5 trillion for contravening their terms of use. The platform's topmost priority is to investigate potential cases of manipulation.
The world's largest exchange platform, Binance, also highlights that its commitment to preventing manipulation is supported by the findings of independent investigations. "Inca Digital's independent investigation into Binance’s practices verified the effectiveness of our approach, as they found 'minimal signs of unusual trading activities'," underscored the spokesperson.
DWF Labs, an investment and market-making firm in the Web3 space, first faced accusations of market manipulation this previous September after high-volume activities on the chain caught the attention of cryptocurrency investors. Wintermute, an algorithmic trading company, was among the first to level accusations of meddling in the cryptocurrency market against DWF Labs. Andrei Grachev, DWF's co-founder, categorically rejects these assertions.
Published At
5/9/2024 1:40:40 PM
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