Binance Officials Respond to Market Manipulation Allegations Alongside DWF Labs’ Wash Trading Activities

The post Binance Officials Respond to Market Manipulation Allegations Alongside DWF Labs’ Wash Trading Activities appeared first on Coinpedia Fintech News

Binance has been under the spotlight of controversy ever since harsh allegations of market manipulation involving DWF Labs were placed against the company. Reports were released claiming that committed significant wash trading activities worth $300 million have been conducted in the last year by DWF Labs. 

After seeing such allegations, several key figures in charge of running Binance have not been able to keep quiet against these claims.

Binance Officials Respond to Market Manipulation Allegations 

According to reports, the major Web3 investment and market-making firm, DWF Labs, has been accused of manipulating the prices of several cryptocurrencies, including the Yield Guild Games aka the YGG token. However, Binance has strictly denied being involved in any kind of oversight of market manipulation activities taking place on its platform. 

Binance’s official account on X denied having been involved or overlooked any market manipulation activities on their platform. In response to WSJ, Binance affirmed that their company follows a “strict market surveillance program.” 

“We do not tolerate market abuse,” the official Binance account stated. Additionally, Binance disclosed that with a transaction volume of more than $2.5 trillion over the last three years, it had offboarded nearly 355,000 users for violating its terms of use.

Senior Binance officer Yi He addressed these claims on X, stating that Binance does not target any fund or market-making entity. 

She emphasized the exchange’s strict market surveillance program and reiterated its commitment to neutrality. She mentioned three gems that are strictly followed in Binance. “1. We have been monitoring the MM market and we are very strict. We do not target any fund; 2. There is competition among MMs, and the means are very shady. You can buy PR as you like, but don’t get close to me; 3. We will ensure our fairness and not participate, but we will also report truthfully to the monitor and other regulatory authorities,” – Yi He contested on X. 

Binance has also assured once and again about maintaining neutrality during the investigation of such market manipulation claims, ensuring that fair competition among market makers prevails. 

“Market maker competition is fierce and our investigation team’s job is to be neutral and look at the evidence without any bias, including bias that might come from market-making firms’ claims against their competitors. We aim to ensure healthy competition in the industry and always fight to protect our users from market manipulation,” said Binance in its response. 

While Binance has been vocal in its response to the allegations, Richard Teng, the new CEO of Binance, has not made any comments regarding the matter on his X account.

DWF Labs’ Response and Broader Industry Challenges

Andrei Grachev, the DWF Labs co-founder, has strongly denied the allegations of market manipulation, asserting that the firm operates with integrity and transparency. 

In a quite sarcastic and confident post, Grachev writes, “If your competitors fight you desperately, you are on the right way. Changing the crypto world order cannot be easy, but this is our mission.”

In the end…

Both Binance’s public responses and comments from DWF Labs’ co-founder deny the claims of market manipulation and ensure that competition is being maintained. However, the truth remains to be unfolded completely.