Binance employee accuses DWF Labs of market manipulation

Market Manipulation Allegations

Binance’s investigative team uncovered allegations of market manipulation involving DWF Labs. The Wall Street Journal reported that DWF Labs’ fictitious trading activities were detected through an internal investigation utilizing proprietary software tools. Upon presenting the findings to DWF Labs’ management, the head of the supervisory service was terminated.

SEC Lawsuit and Response

In response to a lawsuit filed by the U.S. SEC against Binance and its founder Changpeng Zhao in 2023, the exchange committed to enhancing its platform’s security and reliability. To achieve this goal, Binance brought in investigators from the traditional financial sector. During their investigations, VIP clients engaging in market manipulation were identified, with top traders responsible for a significant portion of the platform’s trading volume.

DWF Labs’ Activities and Denial

DWF Labs was accused of inviting potential clients in 2022 to engage in activities aimed at inflating token prices and generating artificial trading volume on exchanges. Despite the allegations, DWF Labs denied any wrongdoing, asserting that the accusations were baseless and misrepresented the facts.

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