Binance has refuted the recent accusations regarding alleged market manipulation by DWF Labs. The allegations of market manipulation by DWF Labs have resurfaced, with an anonymous source claiming to be a former Binance insider stating that Binance investigators had discovered $300 million worth of wash trading from DWF Labs in 2023, according to a report in The Wall Street Journal on May 9.
When questioned about the incident of market manipulation, Binance dismissed the reports. A spokesperson for Binance informed Cointelegraph:
According to the report from The Wall Street Journal, DWF Labs manipulated the price of the Yield Guild Game (YGG) token and at least six other cryptocurrencies in 2023. However, Binance stated that its surveillance program would prevent such manipulation from occurring.
Binance is actively banning traders who exhibit signs of market manipulation, as stated by a spokesperson to Cointelegraph:
Investigating potential market manipulation is a primary concern for Binance, the world’s largest exchange, as demonstrated by independent investigations, added the spokesperson for Binance.
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DWF Labs, a Web3 investment and market-making firm, first faced allegations of market manipulation in September 2023 when high-volume on-chain activity raised concerns among crypto investors.
Wintermute, an algorithmic trading firm and market maker, was one of the first companies to accuse DWF Labs of crypto market manipulation. During an interview at Token2049 in September, Wintermute co-founder Yoann Turpin stated that DWF Labs “are not market makers in our sense” and confuse users by “declaring what are essentially over-the-counter trades as investments.”
Andrei Grachev, the co-founder of DWF Labs, vehemently denied the allegations.
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