Foundation

Yield

TrueUSD

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 <p>A <a rel="noopener noreferrer nofollow" title="report" href="https://thebittimes.com/tag/report.html">report</a> from the Wall Street Journal has alleged that on multiple occasions, <a rel="noopener noreferrer nofollow" title="Binance" href="https://thebittimes.com/tag/binance.html">Binance</a> ignored its own internal investigations about <a rel="noopener noreferrer nofollow" title="market" href="https://thebittimes.com/tag/market.html">market</a> <a rel="noopener noreferrer nofollow" title="manipulation" href="https://thebittimes.com/tag/manipulation.html">manipulation</a> in favor of preserving relationships with important clients.&nbsp;</p>
 <p>In one case in 2023, a trading firm called DWF Labs, led by Russian Andrei Grachev, was making over $4 billion in trades on Binance per month. DWF allegedly offered a service to clients where it would create “artificial volume” and drive up the price of tokens.&nbsp;</p>
 <p>One example described in the report is about Yield Guild Games, a token that DWF invested in. Grachev tweeted about it, DWF sold a huge number of tokens, and very shortly afterwards, the price of the token collapsed.&nbsp;</p>
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    <p lang="en" dir="ltr">@YieldGuild token $YGG listed on Binance Futures. Important step in the token’s development, which brings sustainability and power to it. Good job, guys, I’m really happy to see such nice progress! Short research &gt; below pic.twitter.com/sdk7tMEfRV</p>— Andrei Grachev (@ag_dwf) August 5, 2023
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 <p>Following some of these events, the internal surveillance team at Binance recommended removing DWF and included wash trades it identified as part of this analysis.</p>
 <p>However, a second internal Binance team investigated the surveillance team, allegedly determining that the wash trades conducted by the firm, which advertised its ability to create “artificial volume,” may have been accidental, after which Binance chose not to offload DWF Labs.</p>
 <p>The report claims that two traders accounted for two-thirds of all Binance volume in 2023, which may have motivated the reticence.</p>
 <p>This internal surveillance team also raised concerns about <a rel="noopener noreferrer nofollow" title="Binance" href="https://thebittimes.com/tag/binance.html">Binance</a>’s own internal accounts trading cryptocurrencies on <a rel="noopener noreferrer nofollow" title="Binance" href="https://thebittimes.com/tag/binance.html">Binance</a>, an allegation which was echoed in the Commodity Futures Trading Commission (CFTC) complaint that <a rel="noopener noreferrer nofollow" title="Binance" href="https://thebittimes.com/tag/binance.html">Binance</a> recently settled.</p>
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    Binance and CZ plead guilty but SEC lawsuit remains
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 <p>Following the surveillance team’s report about DWF, the Wall Street Journal noted that the head of the team was fired, several other investigators were ‘laid-off’ as a ‘cost-saving measure’, and others resigned.&nbsp;</p>
 <h2 class="wp-block-heading" id="h-tron-and-justin-sun">Tron and Justin Sun</h2>
 <p>Grachev previously worked for Huobi, now HTX, leading it’s Russian arm. HTX is advised by Justin Sun, who also leads the Tron Foundation, which also ran afoul of Binance’s internal investigators.</p>
 <p>In the months following Sun and the Tron Foundation being charged by the Securities and Exchange Commission (SEC) with market manipulation and wash trading last year, Binance decided to off-board the Tron Foundation.&nbsp;</p>
 <p>However, despite the alleged market manipulation of the Tron Foundation, Binance did still decide to make TrueUSD a ‘zero-fee’ base asset for a variety of trading pairs around the same time they were offboarding Tron Foundation. Sun has been accused of owning TrueUSD but denies the accusations. Sun has admitted he is a ‘partner market maker’ for this asset, and the previous issues with Sun projects manipulating markets did not prevent Binance from embracing this project.&nbsp;</p>
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    FTX knew Justin Sun tried to acquire TrueUSD
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 <p>More recently, the market cap of TrueUSD has collapsed as Binance has moved to other stablecoins like First Digital USD.</p>
 <p>The Wall Street Journal report alleges a culture of allowing illicit activity to continue as long as it benefits Binance.</p>
 <p><em>Got a tip? Send us an email or ProtonMail. For more informed news, follow us on&nbsp;X,&nbsp;</em><em>Bluesky</em><em>, and&nbsp;</em><em>Google News</em><em>, or subscribe to our&nbsp;</em><em>YouTube</em><em>&nbsp;channel.</em></p>
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/binance-banned-tron-foundation-for-market-manipulation-report-tbt87908.html">https://thebittimes.com/binance-banned-tron-foundation-for-market-manipulation-report-tbt87908.html</a></p>

Binance banned Tron Foundation for market manipulation, report

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