- DWF Labs has denied grave allegations leveled against it.
- The report with the allegations cited insider sources.
- An exchange mentioned in the allegations has also responded.
Crypto trading and market-making firm DWF Labs has responded to numerous allegations leveled against it in a Thursday report, including that it engaged in hundreds of millions of wash trading on Binance last year.
On May 9, the Wall Street Journal alleged that Binance’s surveillance team recommended the removal of DWF Labs and other hundred users from the exchange, citing multiple violations of the terms of use and “rampant market manipulation.”
$300M “Wash Trading” on Binance
Notably, in late 2023, the surveillance team claimed that DWF Labs had manipulated the price of the YGG token and “at least six other cryptocurrencies” and processed over $300 million of wash trades on Binance that year.
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Per the report, instead of removing DWF Labs from its platform as recommended by the surveillance team, Binance launched an investigation into the monitoring team itself and refuted its evidence and findings.
The report alleged that Binance then fired the head of the surveillance team and rejected the recommendation to remove DWF Labs from its platform a week later. While the report claimed this information came from insiders at the exchange, implying it could be reliable, DWF Labs thought otherwise.
DWF Labs’ Response
In a statement titled “The Real Origin Story,” DWF labs took a jab at the WSJ’s report, noting that its allegations were “unfounded.”
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“To our valued partners: We want to clarify that many recent allegations reported in the press are unfounded and distort the facts.” DWF Labs said. “Establishments and fake media will not root the movement that Bitcoin started in 2009. We are in crypto for the very reasons why the establishments want to get rid of us.”
On its part, Binance said its “strict market surveillance program” does not tolerate market abuse.
Read why Binance CEO wants Nigeria to release the exchange’s compliance officer:
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Stay updated on why the Binance Nigeria case was delayed:
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