The controversy surrounding DWF Labs has escalated in recent times, as they vehemently deny engaging in a $300 million money laundering transaction on the Binance exchange in 2023. DWF Labs has responded to these allegations, claiming that they misinterpret their ethical business standards.
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WSJ News: Binance Found Evidence of Market Manipulation by DWF, Decided to Tolerate It
Binance’s Position on Market Surveillance
According to The Wall Street Journal,
sources have revealed that Binance, after hiring a team of top investigators in 2022, discovered substantial evidence of market manipulation. Binance’s investigation team recommended the expulsion of hundreds of users, including market maker DWF Labs, for violating the terms of use and allegedly manipulating YGG tokens and other assets.
Despite these findings, Binance has raised questions about the rigor of its surveillance team’s investigation. After an internal review lasting a week, Binance dismissed the head of the surveillance team and decided not to ban DWF Labs.
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Is DWF Labs’ cryptocurrency trading outweighing its market-making business? The project’s clients still give it a five-star rating.
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Binance Spokesperson
clarified
the exchange’s position on market surveillance.
“Binance strongly denies any claims that our market surveillance program allows for market manipulation on our platform. We have a robust market surveillance framework that can identify market abuse and take action. Any users found to be in violation of our terms of use are delisted; we do not tolerate market abuse.
In the past three years, we have closed nearly 355,000 accounts with a trading volume exceeding $2.5 trillion due to violations of our terms of use.
We have 190 million users. They can rest assured that we do not favor any individual user, regardless of their scale, for the sake of platform security. In other words, these are not decisions we make lightly. We conduct thorough investigations using a variety of tools and only delist users when there is sufficient evidence of them violating our terms of use.
A recent independent investigation conducted by Inca Digital into Binance’s market surveillance practices validated the effectiveness of our methods, revealing ‘the slightest trace of abnormal trading activity.'”
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Putting an End to Market Manipulation! Binance Strengthens Efforts to Combat Market Manipulation, Establishes Market Surveillance Team
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Founder He Yi also stated that this is likely a result of fierce competition among market makers, and Binance takes market surveillance seriously.
In the context of the evolving landscape of transparency and fairness in cryptocurrency trading, the situation between DWF Labs, Binance, and the overseeing investigative institutions continues to attract attention from the market and participants.
DWF
WSJ
Market Surveillance
Binance
Further Reading
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