📰 Table Of Contents
Binance’s Response to Allegations
Binance recently faced allegations from DWF Labs regarding market manipulation on May 9. The Wall Street Journal reported that an employee who flagged evidence of market manipulation by DWF Labs was dismissed by Binance.
Allegations and Investigations
The employee and Binance’s surveillance team identified pump-and-dump schemes and wash trading activities by “VIP” clients, including DWF Labs, totaling $300 million. The team recommended removing DWF Labs from the platform due to these violations.
Binance’s Stand
In response, Binance initiated an inquiry into the allegations but found insufficient evidence of wash trading by DWF Labs. The head of surveillance was subsequently fired. Binance emphasized its zero-tolerance policy towards market manipulation.
DWF Labs’ Response
DWF Labs, known for its investments in crypto projects, denied the allegations of market manipulation. The firm emphasized its commitment to ethical business practices and transparency in its operations.
Regulatory Actions and Settlement
Last year, Binance settled charges with US regulators, agreeing to a $4.3 billion settlement over alleged violations. This included operating an unregistered exchange, inadequate controls over market manipulation, and fund commingling. As part of the settlement, Binance co-founder Changpeng Zhao stepped down as CEO and faced legal consequences.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
