Binance claps back at WSJ report, affirms strict market surveillance program

Binance Exchange has tried to clear its name on allegations of overlooking market manipulation.
Sources indicate Binance fired its head of surveillance after he flagged DWF's suspected market manipulation.
In 2023, US authorities accused Binance of maximizing profits by protecting users, including those funding terrorist activities.

Binance Exchange is in the headlines again following revelations by insiders that the trading platform had punished an employee after he flagged an incident of market manipulation at its client DWF Labs, according to a Wall Street Journal report.

Also Read: Binance CEO CZ sentenced to four months in prison, BNB price slightly recovers

Binance responds to allegations of neglected market manipulation evidence

A report by the WSJ, which cited a former employee at Binance, indicated that the trading platform had fired the head of surveillance after he flagged suspected market manipulation by global digital asset market maker and multi-stage web3 investment firm DWS Labs.

The former staff member and his colleagues on the market surveillance team had been brought in to detect indications of market manipulation. However, after they discovered DWS Labs manipulating various tokens, the team leader was fired. Notably, a Lamborghini-loving crypto trader runs DWS Labs, according to the report.

Specifically, VIP clients trading over $100 million monthly were engaging in pump-and-dump schemes and wash trading. These activities are against Binance’s terms and conditions in its commitment toward delivering a safe and trusted platform.

*Binance Fired Head of Surveillance After He Flagged DWF's Suspected Market Manipulation, Sources Say -- WSJ
— Tree News (@News_Of_Alpha) May 9, 2024

Citing the WSJ, “Former company insiders say the firing of an internal investigator showed that the crypto exchange neglected evidence of market manipulation.”

Binance has since clapped back at the article titled “Binance Pledged to Thwart Suspicious Trading—Until It Involved a Lamborghini-Loving High Roller.” In its defense, the largest exchange on trading volume metrics indicates, “…we affirm our strict market surveillance program. We do not tolerate market abuse.”

In response to WSJ, we affirm our strict market surveillance program. We do not tolerate market abuse.

Over the last three years, we have offboarded nearly 355,000 users with a transaction volume of more than $2.5 trillion for violating our terms of use.

Market maker…
— Binance (@binance) May 9, 2024

The exchange also revealed having “off boarded” approximately 355,000 users in the last three years for violating the platform’s terms of use. Reportedly, this cost the platform upwards of $2.5 trillion in trading volume.

Binance also indicated that remaining impartial is at the core of its investigation team’s job description.

Binance Coin (BNB) is up almost 2% in the past 24 hours to trade for $596.01, unaffected by the report. This is despite the exchange’s issues with the authorities in the past for maximizing profits by protecting and enabling illicit transactions.

BNB/USDT 1-day chart

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