According to a report by The Wall Street Journal, Binance’s market surveillance team has discovered that cryptocurrency market maker and investment firm DWF Labs is suspected of market manipulation. Investigators have pointed out that DWF Labs manipulated the market prices of YGG and at least six other tokens during the period of 2023, and processed over $300 million worth of wash trades, recommending the removal of the client.
One case involved DWF Labs founder Andrei Grachev publicly tweeting about pumping YGG, after which DWF sold nearly 5 million tokens in two batches near the peak, causing a token crash. Gabby Dizon, co-founder of YGG, stated that he is unaware of the investigation results.
However, the head of Binance’s monitoring department was fired after reporting the suspected market manipulation by DWF. The report states that this was because Binance considered the false trades discovered by the monitoring team to be proprietary trades and not constituting manipulation. Additionally, Binance stated that the head of the monitoring team had collaborated too closely with DWF’s competitors in this case. A former insider at Binance stated that firing an internal investigator demonstrates that this cryptocurrency exchange has ignored evidence of market manipulation.
In response, DWF Labs quickly tweeted that many of the allegations reported by the media recently are unfounded, and that DWF Labs always adheres to the highest standards of integrity, transparency, and ethics.
However, in reality, DWF Labs has long had a notorious reputation in the cryptocurrency industry, and its market manipulation practices are no longer news. Previously, the founders of Wintermute and GSR, two well-known cryptocurrency market makers, even publicly quarreled with the founder of DWF Labs on Twitter.
Successful Conclusion of CoinEx Taiwan’s 7th Anniversary Celebration, Embracing the Arrival of the Web3 Era Hand in Hand with Users
Since its establishment in 2017, CoinEx has been a professional cryptocurrency trading pla…