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WSJ Reveals Binance Allowing DWF to Manipulate Prices, Binance: Market Surveillance Program Will Not Allow Such Things to Happen

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WSJ Reveals Binance Allowing DWF to Manipulate Prices, Binance: Market Surveillance Program Will Not Allow Such Things to Happen

A recent controversy surrounding DWF Labs has escalated, with the firm vehemently denying allegations of a $300 million money laundering transaction on the Binance exchange in 2023. DWF Labs has responded to these accusations, claiming that they misrepresent their ethical business standards.

WSJ Report: Binance Discovered DWF Market Manipulation, Decided to Tolerate

According to a report from the Wall Street Journal, sources revealed that Binance found substantial evidence of market manipulation after hiring a team of top investigators in 2022. Binance's investigative team recommended the expulsion of hundreds of users for violating terms of use, including market maker DWF Labs, who are suspected of manipulating the YGG token and other assets.

Despite these findings, questions were raised about the vigilance of Binance's monitoring team. After an internal review lasting a week, Binance fired the head of the monitoring team and decided not to ban DWF Labs.

Is DWF Labs' speculative trading more significant than its market-making business? Clients still give the project five-star ratings.

Binance's Stance on Market Monitoring

A Binance spokesperson clarified the exchange's position on market monitoring.

"Binance strongly denies any claims that our market monitoring program allows any form of market manipulation on our platform. We have a robust market monitoring framework to identify market abuse and take action. Any user found in violation of our terms of use is delisted; we do not tolerate market abuse.

Over the past three years, we have closed nearly 355,000 accounts for violating our terms of use, with trading volumes exceeding $2.5 trillion.

We have 190 million users. They can rest assured that we do not show favoritism to any individual user regardless of their scale for the safety of the platform. In other words, these are not decisions we take lightly. We conduct thorough investigations using various tools and only delist when there is sufficient evidence of a breach of our terms of use.

A recent independent investigation by Inca Digital into Binance's market monitoring practices validated the effectiveness of our approach, revealing 'the slightest signs of abnormal trading activity.'"

Crackdown on market manipulation! Binance strengthens efforts to combat market manipulation and establishes a market surveillance team.

Founder He Yi also stated that this is likely a result of fierce competition among market makers, and Binance has strict market monitoring.

In the evolving landscape of cryptocurrency trading where transparency and fairness are crucial, the ongoing situation between DWF Labs, Binance, and the overseeing investigative agencies continues to attract the attention of the market and participants.