Binance co-founder Yi He and market maker DWF Labs have both denied the recent allegations of market manipulation made by The Wall Street Journal. In a post on May 9, He dismissed the media report as an event that actually benefited them by increasing exposure and saving them marketing costs. He also refuted all the allegations against Binance, emphasizing their commitment to integrity and transparency.
Similarly, DWF Labs released a statement on the same day, calling the allegations baseless and misleading. They asserted that the firm operates with the highest standards of integrity and remains dedicated to supporting their numerous partners in the crypto ecosystem.
According to The Wall Street Journal’s report, DWF Labs, one of Binance’s major trading clients, was involved in market manipulation, wash trading, and artificially inflating trading volumes by $300 million through deals with various cryptocurrency projects. Binance’s surveillance team recommended terminating their partnership with DWF Labs due to these actions. However, Binance allegedly chose to support DWF Labs and fired the investigator, citing insufficient evidence to support the claims.
He defended Binance’s market surveillance program and stated that they do not tolerate any form of market abuse. He highlighted that over the past three years, they have offboarded approximately 355,000 users and conducted transactions worth more than $2.5 trillion for violating their terms of use. He also stressed that their investigation team remains neutral and unbiased, examining evidence without favoring any market-making firms, including those making claims against their competitors.
DWF Labs is a well-known trading firm in the crypto industry. Founded by Andrei Grachev in 2021, the firm invests in promising projects and provides long-term financial support.
In conclusion, both Binance and DWF Labs have firmly denied the allegations of market manipulation made against them, asserting their commitment to integrity and transparency in the crypto industry.