In response to recent allegations of market manipulation raised by The Wall Street Journal, Binance co-founder Yi He and market maker DWF Labs have both refuted any involvement. He, in a recent post, described the media report as an event that “significantly increased our exposure and saved us a lot of marketing expenses.” However, he firmly denied all the allegations made against Binance.
Similarly, DWF Labs released a statement on the same day, dismissing the accusations as baseless and distorting the truth. The firm emphasized its commitment to operating with the highest standards of integrity, transparency, and ethics, and expressed continued support for its partners in the crypto ecosystem.
Earlier on May 9, The Wall Street Journal published a report claiming that DWF Labs, one of Binance’s major trading clients, had engaged in market manipulation, wash trading, and artificially inflated trading volumes amounting to $300 million through deals with various crypto projects. Allegedly, Binance’s surveillance team recommended terminating its relationship with DWF Labs due to these activities, but the exchange opted to side with DWF Labs and dismissed the investigator, citing insufficient evidence to support the claim.
“We affirm our rigorous market surveillance program and have zero tolerance for market abuse,” commented He. “In the past three years, we have terminated the accounts of nearly 355,000 users with a transaction volume exceeding $2.5 trillion for violating our terms of use,” he added. He further emphasized the neutrality of their investigation team, whose responsibility is to examine evidence without bias, including any claims made by market-making firms against their competitors.
DWF Labs, founded by Andrei Grachev in 2021, is a prominent trading firm in the crypto industry. The company invests in promising projects and provides long-term financial support.
Related: Binance firmly denies allegations of market manipulation by DWF Labs.