Was trading firm DWF Labs using Binance to run wash trades?

Binance sink. For several months, the platform Binance makes an unprecedented change in legislative direction. A strategy launched in parallel with the forced departure of its CEO founder, Changpeng Zhao (CZ)under the influence of a latest sentence to 4 months imprisonment. However, this does not prevent certain disturbing files from reappearing. As, for example, this supposed wash trade operations estimated at $300 million, highlighted by the Wall Street Journal. It is about one discontinued internal investigation and a trading company DWF Labs in full official denial. We take stock…

Binance: for or against wash trading?

It is clear that the legally correct strategy initiated by The Binance platform not allow him to get out of all complicated files. For example, it is enough to see how the situation is getting stuck in Nigeriafaces accusations of devaluation of the local currency, which leaves (very) confused.

Actually this exchange market leader in cryptocurrencies continues to make the news. And the latest affair has just been unearthed from 2023 by journalists from the Wall Street Journal. in the question? A laundry trade operation estimated at $300 million.

Binance: for or against wash trading?
The Binance platform is once again in the spotlight

This affair was apparently dug up by former employees of the company. This about dismissal of an investigator high-level internal officer who perhaps did his job a little too well. However, he and his team were hired in 2022 to clear this exchange of all market manipulation operations.

But according to the Wall Street Journal, things went wrong when this team of digital snoops stumbled upon a bone 300 million dollars, at the end of last year. Facts that would reveal deliberate manipulation of the price of certain cryptocurrencies – like YGG and at least 6 others – by a major trading company called DWF Labs. Whoops…

Binance and DWF trade deny in the heart

After this embarrassing revelation of laundry trade, Binance would have launched an investigation…about the surveillance team and the evidence presented. With the result a week later, dismissal of the person responsible for this discovery. And at the same time the rejection of his request to delete the account of the company involved from his stock exchange.

The facts surfaced again this weekend, in the face of which The Binance platform disclaims any kind of participation or responsibility.

“Binance categorically denies any allegation that its market monitoring program enabled manipulation on its platform. We have a robust market monitoring framework that identifies and takes action against market abuse. Any user who violates our terms of service is banned.”

Binance spokesperson

However, the company DWF Labs had already been appointed in December last year similar facts. Especially by offering its customers the possibility of creating “artificial volumes” to ensure them a significant profit. But of course all this is vehemently denied of interested parties:

“We have noted that a recent article contains several claims that we believe are unfounded and do not accurately represent our ethical business practices.”

DWF Labs

A storm in a glass of water, or a really organized operation of laundry trade on a large scale update? At least, The Binance platform claims to have ruled out almost 355,000 users over the last 3 years, for a total turnover of 2.5 billion dollars. All after proven violations of its internal policy. But that still doesn’t explain why DWF Labs’ structure fell through the cracks of this web, especially after explicit reporting. To be continued in the next section…

Leave a Comment