<p><strong>Binance, the world’s largest cryptocurrency exchange, has <a href="https://watcher.guru/news/binance-responds-to-sec-wash-trading-accusations" target="_blank" rel="noopener noreferrer nofollow">responded</a> to the US Securities and Exchange Commission’s accusations of wash trading.</strong></p> 
<h2 style="text-align: center;" id="binance-denies-wash-trading-allegations">Binance Denies Wash Trading Allegations</h2> 
<p>The SEC filed a lawsuit against Binance in June, accusing the exchange of various violations of securities laws, including wash trading. Binance.US, the US arm of the exchange, strongly denies the accusations and calls them unfounded.</p> 
<blockquote class="twitter-tweet"> 
 <p dir="ltr" lang="en">The U.S. outlawed wash trading in stocks and bonds a century ago. Now the practice is raising concerns as regulators look at crypto exchanges <a href="https://t.co/z24euDXEJy" rel="noopener noreferrer nofollow">https://t.co/z24euDXEJy</a></p> 
 <p>— The Wall Street Journal (@WSJ) <a href="https://twitter.com/WSJ/status/1683416780075614208?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">July 24, 2023</a></p> 
</blockquote> 
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script><br> Wash trading is when an entity buys and sells the same asset to manipulate the market. This practice can create the illusion of higher demand for the asset and artificially increase its price.</p> 
<h2 style="text-align: center;" id="conflicting-reports">Conflicting Reports</h2> 
<p>The Wall Street Journal reported that nearly $70,000 worth of bitcoin was traded within the first hour of Binance’s launch in 2019. A message from Binance’s CEO, CZ, allegedly admitted these trades were from the exchange itself.</p> 
<blockquote class="twitter-tweet"> 
 <p dir="ltr" lang="en">It is very interesting that Binance is defending themselves by claiming “what you are calling wash trading isn’t wash trading” instead of arguing that “we need regulatory clarity on wash trading crypto.”<a href="https://t.co/QfqKTcPv2y" rel="noopener noreferrer nofollow">https://t.co/QfqKTcPv2y</a> <a href="https://t.co/VNoqkyWSk2" rel="noopener noreferrer nofollow">pic.twitter.com/VNoqkyWSk2</a></p> 
 <p>— CryptoInferno (@crypto1nfern0) <a href="https://twitter.com/crypto1nfern0/status/1683548216099307520?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">July 24, 2023</a></p> 
</blockquote> 
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p> 
<h2 style="text-align: center;" id="market-manipulation">Market Manipulation</h2> 
<p>Wash trading is a form of market manipulation that misleads other investors. It is considered illegal in most asset classes but remains somewhat unclear in the cryptocurrency industry.</p> 
<p>If Binance engaged in such malpractice, it may have sought to increase its trading volume to attract traders by creating the illusion of liquidity on the platform.</p> 
<blockquote class="twitter-tweet"> 
 <p dir="ltr" lang="en">🔥🚀📢<a href="https://twitter.com/hashtag/Binance?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#Binance</a> SHUTS DOWN SEC with EPIC Response! 💥😱 Find out how the crypto giant CRUSHED wash trading allegations! 💰🔥 <a href="https://twitter.com/hashtag/Binance?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#Binance</a> <a href="https://twitter.com/hashtag/SEC?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#SEC</a> <a href="https://twitter.com/hashtag/CryptoWars?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#CryptoWars</a> <a href="https://twitter.com/hashtag/GameChanger?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#GameChanger</a> 🚀📈🌟</p> 
 <p>A THREAD🧵 <a href="https://t.co/Z2SlrRenZz" rel="noopener noreferrer nofollow">pic.twitter.com/Z2SlrRenZz</a></p> 
 <p>— Crypto Lalit (@CryptoLalit151) <a href="https://twitter.com/CryptoLalit151/status/1683514345295319040?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">July 24, 2023</a></p> 
</blockquote> 
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p> 
<h2 style="text-align: center;" id="regulatory-oversight">Regulatory Oversight</h2> 
<p>As the cryptocurrency industry gains more regulatory attention, it will become harder for exchanges and market makers to engage in illicit activities like wash trading. <a href="https://walletinvestor.com/magazine/how-to-identify-and-avoid-fake-news-in-the-crypto-industry" target="_blank" rel="noopener noreferrer nofollow">Blockchain technology’s transparency</a> can aid in oversight efforts.</p>

Binance Responds to SEC Wash Trading Accusations

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