HomeNEWSBinance denies DWF’s $300 million wash trading allegation

Binance denies DWF’s $300 million wash trading allegation


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Global crypto exchange, Binance has responded to the latest WSJ report alleging its involvement in a $300 million worth of wash trading from DWF last year. In a Thursday Twitter post, the crypto exchange denied the allegation, stressing that it did not engage in such market manipulation.

In a report, WSJ has cited one anonymous source, claiming to be a former Binance insider. The insider according to WSJ claimed Binance investigators discovered $300 million worth of wash trading from DWF Labs. DWF Labs was alleged to have manipulated the price of YGG and six other tokens in 2023. Binance, in a response to the report, said that was impossible. It insisted that it has a strong surveillance program in place to put such endeavors into check.

Binance market surveillance program has zero tolerance for market abuse – Spokesperson

Binance added that its strict surveillance program have zero tolerance for market abuse. It cited how it offboarded over 355,000 users with $2.5 trillion transaction volume for violating its terms of use. While emphasizing its commitment to ensuring healthy competition in the market, Binance also affirmed the neutrality of its investigation team.

The spokesperson for Binance also asked members of the public to debunk the assertion that the exchange’s market surveillance program paved way for market manipulation. According to the exec, Binance hosts a robust market surveillance framework, primarily stationed to stop any form of market abuse. However, he clarified that any allegation from market-making firms against their competitors have to be backed by evidences.

Emphasizing the efficiency of Binance’s market surveillance program, the spokesperson referenced a recent independent investigation from Inca Digital which validates its effectiveness and found little signs of anomalous trading activities only.

Worth noting that the market manipulation allegation against DWF Lab first came to limelight in September 2023. Wintermute, an algorithm trading firm was one of the first companies to raise the alarm after high-volume on-chain transaction was linked to DWF, fueling suspicion that the firm was engaging in wash trading.

Meanwhile, DWF Labs’ co-founder, Andrei Grachev refuted the allegation.

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Dare Ibitoye
Dare Ibitoye
Over the years, Dare has been a committed reporter in the field of cryptocurrencies. He is also interested in researching about the innovative projects within the blockchain space. During his spare time, Dare loves to listen to music and read about technological trends in the contemporary world

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