WSJ: Binance Market Surveillance Head Fired After Reporting DWF Market Manipulation
According to a report by The Wall Street Journal on May 9th, members of Binance’s market surveillance team discovered possible market manipulation by market maker DWF Labs. However, after reporting the situation, the surveillance personnel were fired by Binance. In response to this, Binance stated that they have zero tolerance for market manipulation and will not favor any wrongdoers.
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Table of Contents:
WSJ: Binance Market Surveillance Head Fired After Reporting DWF Market Manipulation
Binance: Investigation Team Remains Neutral and Avoids Bias
DWF Labs: Media Reports are False
Following the recent sentencing of Binance’s founder, Zhao Changpeng (CZ), by the United States, Binance, the world’s largest cryptocurrency exchange, has once again faced public controversy regarding compliance issues.
WSJ: Binance Market Surveillance Head Fired After Reporting DWF Market Manipulation
On May 9th, The Wall Street Journal quoted an anonymous insider claiming to be a former Binance employee, stating that Binance’s market surveillance team discovered that prominent market maker DWF Labs engaged in fraudulent transactions worth $300 million during the year 2023. The team also found evidence of market manipulation involving at least six cryptocurrencies, including YGG.
According to the insider, the head of Binance’s surveillance team reported the potential market manipulation by DWF Labs to the internal management of Binance but was subsequently fired, raising concerns about the transparency and fairness of Binance’s market.
Binance: Investigation Team Remains Neutral and Avoids Bias
Due to the rapid spread of this WSJ report and the ensuing discussions in the community, Binance issued an official statement on the Binance Futures’ official channel last night, stating that Binance has strict market surveillance procedures and will not tolerate any market manipulation. The statement also emphasized that the investigation team remains neutral and avoids bias.
He Yi, co-founder of Binance, also retweeted Binance’s official response and added the following comment:
DWF Labs: Media Reports are False
On the other hand, DWF Labs, as a significant party involved, issued a clarification yesterday, stating that many media reports have distorted the facts.
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