- Major crypto-market maker, DWF, is under scrutiny for alleged market manipulation on Binance, reportedly making over $300 million through shady means.
- Binance is also under fire for reportedly firing an employee who flagged DWF’s questionable tactics.
- The allegations add to the regulatory challenges Binance has faced, including a $4 billion plea deal for flouting U.S anti-money laundering laws.
Uncover the details of the alleged market manipulation by DWF on Binance and the subsequent fallout, including the firing of a Binance employee who raised the alarm.
DWF’s Alleged Market Manipulation
According to a report by the Wall Street Journal, DWF, one of the largest crypto-market makers, allegedly manipulated the price of Yield Guide Games (YGG) and at least six other tokens on Binance, making over $300 million in wash trades in 2023. These actions were reportedly in violation of Binance’s terms of use, leading Binance’s market surveillance team to recommend removing DWF from the exchange’s VIP list to maintain the platform’s integrity.
Binance’s Response and Fallout
Despite the recommendations of its surveillance team, Binance reportedly disregarded the report and fired the team’s lead a week after the DWF assessment was submitted. This dismissal has raised further questions about Binance’s practices, with allegations that the company routinely rejects surveillance reports that conflict with its prominent clients. DWF has denied the allegations, stating that many of the recent allegations reported in the press are unfounded and distort the facts.
Regulatory Challenges for Binance
The allegations against DWF and Binance’s response add to the regulatory challenges the exchange has faced. Notably, Binance entered a plea deal and paid $4 billion for flouting U.S anti-money laundering laws last year. Later, in 2024, former CEO “CZ” was sentenced to four months. Despite these issues, Binance’s token (BNB) has remained relatively stable, continuing its price consolidation between $500 and $615.
Conclusion
The allegations against DWF and Binance’s response have raised serious questions about the integrity of the crypto-market. As regulators continue to scrutinize the actions of major players in the crypto space, the need for transparency and accountability in the industry becomes increasingly apparent.
