Binance denies reports of DWF Labs market manipulation

Binance has denied the latest allegations of market manipulation by DWF Labs.

Allegations of market manipulation by DWF Labs have resurfaced. According to a May 9 WSJ report, Binance investigators discovered a $300 million laundering trade from DWF in 2023, according to an anonymous source, a former Binance insider.

When asked about the incident of market manipulation, Binance denied the reports. A Binance spokesperson told Cointelegraph:

“Binance strongly rejects any suggestion that its market monitoring program allows market manipulation on our platform. We have a robust market monitoring framework that identifies and takes action against market abuse. Any users who violate our terms of use are banned. We do not tolerate market abuse.”

According to a WSJ report, DWF Labs' control over the value of your own Guild Game (YGG) token and at least six other cryptocurrencies last year. However, Binance says its monitoring program makes this impossible.

Binance is actively blocking traders who show signs of market manipulation, a spokesperson told Cointelegraph.

“Over the past three years, we've banned nearly 355,000 users with over $2.5 trillion in transaction volume for violating our terms of use.”

A Binance spokesperson added: Investigating market manipulation is a top priority for Binance, the world's largest exchange, which has been proven by independent investigations.

“A recent independent investigation from Inca Digital into Binance's market monitoring system confirms the effectiveness of our approach, detecting “small signs of unusual trading activity”.

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DWF Labs, a Web3 investment and market maker company, was hit with market manipulation charges early last September after the high volume activity on the chain raised the eyebrows of crypto investors.

Wintermuth, an algorithmic trading firm and market maker, was among the first companies to accuse DWF Labs of rigging the crypto market.

During an interview with Token2049 in September, Wintermutt founder Ioan Turpin said DWF Labs “are not market makers in our sense” and confuse users because they “essentially define what [over-the-counter] Traded as investments.

Andrey Grachev, co-founder of DWF Labs, strongly denied the allegations.

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