2024

April

when

<p class="is-style-lead">Binance’s&nbsp;investigative team alleges it discovered that market maker DWF Labs was involved in market manipulation.</p>
<p>The Wall Street Journal (WSJ) <a href="https://www.wsj.com/finance/currencies/binance-investigation-suspicious-trading-dwf-5f481f9d" target="_blank" rel="noopener noreferrer nofollow">reported</a> that&nbsp;DWF&nbsp;Labs’ alleged&nbsp;fictitious trading was discovered&nbsp;during an internal investigation using proprietary software tools. When&nbsp;the discovery was presented&nbsp;to the DWF Labs’ management, the exchange fired the head of the supervisory service.</p>
<p>After the U.S. <a href="https://crypto.news/tag/SEC/" target="_blank" rel="noopener noreferrer nofollow">SEC</a> filed a lawsuit against <a href="https://crypto.news/tag/binance/" target="_blank" rel="noopener noreferrer nofollow">Binance</a> and its founder, <a href="https://crypto.news/tag/Changpeng-Zhao/" target="_blank" rel="noopener noreferrer nofollow">Changpeng Zhao</a>, in 2023, the exchange promised to strive to build a secure and reliable platform continuously.&nbsp;To do this, the company hired investigators from the traditional financial sector.</p>
<p>During the study, the group identified&nbsp;VIP clients&nbsp;involved in market manipulation. The report stated that&nbsp;top traders&nbsp;accounted for two-thirds of the total trading volume on the platform.</p>
<p>You might also like: <a href="https://crypto.news/why-did-binance-ditch-ordinals-and-will-the-market-survive/" rel="noopener noreferrer nofollow"> Why did Binance ditch Ordinals — and will the market survive? </a></p>
<p>Additionally, Binance noticed that accounts were&nbsp;trading&nbsp;certain&nbsp;cryptocurrencies.&nbsp;According to former company insiders, no response was received when DWF Labs was asked who controlled the addresses.</p>
<p>The report notes that in 2022, DWF Labs invited potential clients to use&nbsp;an active trading position to increase token prices and create artificial volume on exchanges.&nbsp;WSJ also added that the market maker confirmed&nbsp;that it had created an artificial trading volume for one of its clients.</p>
<p>DWF Labs called the accusations unfounded and that it distorted facts.</p>
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   <p lang="en" dir="ltr">To our valued partners: We want to clarify that many recent allegations reported in the press are unfounded and distort the facts. <br><br>DWF Labs operates with the highest standards of integrity, transparency, and ethics, and we remain committed to supporting you and our over 700… <a href="https://t.co/aydp1hoham" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/aydp1hoham</a></p>— DWF Labs (@DWFLabs) <a href="https://twitter.com/DWFLabs/status/1788507756326269293?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">May 9, 2024</a>
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<p>Binance, in a commentary on the article, stated that it strictly adheres to market supervision and prevents abuse. According to statistics, over three years, the exchange disconnected about 355,000 users with a transaction volume of more than $2.5 trillion for violating the terms of use.</p>
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   <p lang="en" dir="ltr">In response to WSJ, we affirm our strict market surveillance program. We do not tolerate market abuse.<br><br>Over the last three years, we have offboarded nearly 355,000 users with a transaction volume of more than $2.5 trillion for violating our terms of use. <br><br>Market maker…</p>— Binance (@binance) <a href="https://twitter.com/binance/status/1788523509209051315?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">May 9, 2024</a>
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<p>In April 2023, the market maker&nbsp;was suspected&nbsp;of dumping tokens of its portfolio projects worth at least $65 million. Projects included raising funds for an ICO for a project that&nbsp;was never launched, unprofitable management of the investment portfolio, and the company’s connection with <a href="https://crypto.news/tag/OneCoin/" target="_blank" rel="noopener noreferrer nofollow">OneCoin</a>. OneCoin’s cryptocurrency pyramid scheme bilked users out of $4.4 billion.</p>
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   <p lang="en" dir="ltr">1/ Who the heck is DWF Labs? <br><br>In the last couple of months, they have been everywhere, throwing ridiculous checks at everyone from legit projects to dead ones.<br><br>I dug a bit into on-chain data and other resources, and it doesn't look good.</p>— Nay (@gmnay_) <a href="https://twitter.com/gmnay_/status/1645426187160924161?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">April 10, 2023</a>
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<p>You might also like: <a href="https://crypto.news/binances-investigations-team-aids-in-arrest-of-zkasino-scam-suspect/" rel="noopener noreferrer nofollow"> Binance’s Investigations team aids in arrest of ZKasino scam suspect </a></p>

Binance employee accuses DWF Labs of market manipulation

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