Binance co-founder Yi He and market maker DWF Labs have denied allegations of market manipulation brought by The Wall Street Journal, dismissing the claims as unfounded. In response to the media report, He stated that it actually increased their exposure and saved them marketing costs. He emphasized that Binance had no involvement in the alleged activities. Similarly, DWF Labs stated that the allegations distorted the facts and affirmed their commitment to integrity and transparency in supporting their partners in the crypto ecosystem.
According to The Wall Street Journal, DWF Labs, a major trading client of Binance, was accused of engaging in market manipulation, wash trading, and inflating trading volumes. The journal claimed that DWF Labs conducted deals with crypto projects amounting to $300 million. Binance’s surveillance team recommended discontinuing the client, but Binance allegedly chose to side with DWF Labs and terminated the investigator due to lack of evidence.
He defended Binance’s strict market surveillance program, stating that they do not tolerate market abuse. He highlighted that in the past three years, they have removed nearly 355,000 users and $2.5 trillion in transaction volume for violating their terms of use. He also emphasized the importance of neutrality and unbiased investigation by their team, even when faced with claims from market-making firms against their competitors.
DWF Labs, founded by Andrei Grachev in 2021, is a prominent trading firm in the crypto industry. The firm invests in promising projects and offers long-term financial support.
Binance has strongly denied the reports of market manipulation by DWF Labs.