Binance and DWF Labs Refute Recent Market Manipulation Claims
Summary:
Binance co-founder, Yi He and proprietary trading firm, DWF Labs rebuff market manipulation allegations reported by The Wall Street Journal. The accusations involve DWF Labs, a major client of Binance, and supposed fraudulent activities amounting to $300 million. Both parties uphold their commitment to integrity and transparency, with Binance further emphasizing strict market monitoring and its history of discontinuing services to users violating its terms of use.
In the face of fresh market manipulation claims by The Wall Street Journal, both co-founder of Binance, Yi He, and proprietary trading company, DWF Labs, have refuted any participation. On May 9, He addressed the media story as an event that "increased our visibility and considerably reduced our advertising expenditure" in an X post. However, the co-founder refuted all accusations against Binance, noting that "some media articles are becoming more influenced by personal feelings and predispositions, rather than evidence. As an instance, complaints from ex-staff can form the groundwork for a piece, whilst Binance's active cooperation with law enforcement agencies in tracking and arresting the mastermind behind Zkasino, is overlooked by journalists."
DWF Labs, on that same day, deemed the accusations as "baseless and a distortion of the truth", stating that they function "with utmost integrity, transparency, ethical standards, and remain dedicated to supporting both our customers and over 700 associates within the crypto space."
Earlier today, a report by the Wall Street Journal alleged that DWF Labs, one of Binance's biggest trading clients, was purportedly involved in market manipulation, fake trading, and exaggerated trading volumes that summed up to $300 million through agreements with crypto projects. Despite the recommendation of the exchange's surveillance team to terminate its partnership with the client, Binance is alleged to have defended DWF Labs and dismissed the analyst, citing lack of substantial proof for the allegation.
"We stand by our rigorous market monitoring system[and] We have zero tolerance towards market malpractices," the exchange stated. "In the past three years, we have discontinued services to nearly 355,000 users for violating our user agreement terms, with a cumulative transaction volume of more than $2.5 trillion," adding, "The rivalry among market makers is intense, and it is important for our investigation team to remain unbiased, free from any inclinations, including those that could arise from allegations made by market-making firms against their competitors."
Established in 2021 by Andrei Grachev, DWF Labs is a prominent player in the crypto trading industry, consistently investing in promising initiatives and offering long-term financial aid. Related: Binance discredits reports of market manipulation involving DWF Labs.
Published At
5/9/2024 8:58:39 PM
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