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Possibility of virtual trading of Bitcoin
Binance US, the U.S. division of major crypto asset (virtual currency) exchange Binance, may have traded immediately after its launch as a wash trade. The Wall Street Journal (WSJ) reported on the 24th that it confirmed the exchange of internal messages.
Immediately after its launch in 2019, Binance US reportedly traded $70,000 worth of Bitcoin (BTC) in the first hour. However, the WSJ has learned that Changpong Zhao (CZ), CEO of Binance, said, “I think we made the deal.” Binance, however, has denied the reports.
A wash trade is a trade that is executed for the purpose of inducing trade by misleading other investors into thinking that trading is booming. Specifically, it refers to placing orders for both buying and selling of the same asset by the same person or related party, and does not aim to transfer rights.
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Binance US wash trading was pointed out last month when the US Securities and Exchange Commission (SEC) filed a lawsuit against them. “From at least 2019 to June 2022, Sigma Chain, a trading company controlled by Mr. CZ, was wash trading on Binance US to inflate the trading volume of cryptocurrency securities,” the SEC claims.
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The SEC did not list Bitcoin as an example of a security in its complaint, but noted that Binance.US had virtually no structure necessary to monitor wash trades. According to the complaint, Sigma Chain operates under the direction of Mr. CZ.
What is Binance
Operates a major virtual currency exchange with a large number of traded stocks, trading volume, and registered users. In addition, we are developing a wide range of businesses such as the activities of the venture capital department, the provision of educational content, and philanthropic activities. In November 2010, the company announced its entry into the Japanese market.
Cryptocurrency Glossary
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binance comments
A representative for Binance US told the WSJ:
We believe the SEC’s allegations regarding wash trading are completely baseless.
The SEC misunderstands the facts and misuses the law.
In addition, a Binance official told CoinDesk:
Binance does not allow or allow wash trading, which is a violation of our terms of service. I have never wash traded before.
We have a dedicated team that monitors the market, checking for fraudulent activities such as wash trades.
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The post Binance US may inflate Bitcoin trading volume with fake trading, Binance denies: WSJ report appeared first on Our Bitcoin News.
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