Binance Refutes Allegations of Market Manipulation by DWF Labs
DWF Labs has once again come under fire for alleged market manipulation, but Binance has denied the claims. An anonymous individual, who claims to be a former Binance insider, alleged that Binance investigators discovered $300 million worth of wash trading by DWF Labs in 2023, as reported by the Wall Street Journal on May 9.
When questioned about the incident, Binance dismissed the reports. A spokesperson for Binance told Cointelegraph:
“We have implemented a robust surveillance program that would make such manipulation impossible.”
Binance is actively taking action against traders who display signs of market manipulation, the spokesperson added:
“Detecting and investigating potential market manipulation is a top priority for Binance, the world’s largest exchange, as demonstrated by independent investigations.”
In September last year, DWF Labs faced its first round of market manipulation allegations after high-volume on-chain activity raised concerns among crypto investors. Wintermute, an algorithmic trading firm and market maker, was one of the first companies to accuse DWF Labs of crypto market manipulation.
During an interview at Token2049 in September, Yoann Turpin, co-founder of Wintermute, stated that DWF Labs “are not market makers in our sense” and confuse users by categorizing their “over-the-counter trades as investments.”
Andrei Grachev, co-founder of DWF Labs, vehemently denied the allegations.
In a related incident, a trader lost a seven-figure sum due to the 0L Network hard fork.