In a report on May 9th, The Wall Street Journal pointed out that members of the Binance market surveillance team discovered potential market manipulation by market maker DWF Labs. However, after reporting the situation, the surveillance team members were fired by Binance. In response, Binance stated that it has zero tolerance for market manipulation and will not favor any wrongdoers.
(Previous summary: Good news! Binance’s Zhao Changpeng only sentenced to 4 months imprisonment. What did CZ say in court?)
(Background information: The growth story of He Yi: psychology major, former teacher, host… Binance can’t do without her now)
Table of Contents:
WSJ: Binance’s market surveillance head fired after reporting DWF manipulation
Binance: Investigation team remains neutral and avoids bias
DWF Labs: Media reports are untrue
Following the recent sentencing of Binance’s founder, Zhao Changpeng (CZ), by the United States, the world’s largest cryptocurrency exchange Binance has once again faced public controversy over compliance issues.
WSJ: Binance’s market surveillance head fired after reporting DWF manipulation
On May 9th, The Wall Street Journal quoted a self-proclaimed former insider of Binance in a report, stating that Binance’s market surveillance team discovered that prominent market maker DWF Labs engaged in false transactions worth $300 million during the period of 2023. They also manipulated the prices of at least six cryptocurrencies, including YGG.
Sources revealed that after the head of Binance’s surveillance team discovered the potential market manipulation by DWF Labs and reported it internally, they were fired by Binance, raising doubts about Binance’s market transparency and fairness.
Binance: Investigation team remains neutral and avoids bias
Due to the rapid spread of WSJ’s report in the community, Binance issued an official statement last night, stating that it has strict market surveillance procedures and will not tolerate any market manipulation:
Furthermore, Binance co-founder He Yi retweeted Binance’s official response and added:
DWF Labs: Media reports are untrue
On the other hand, as an important party involved, market maker DWF Labs clarified yesterday that many media reports distorted the facts.
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