Binance Accused of Dismissing Investigator Disclosing Client Market Manipulation

By: Eva Baxter

The global cryptocurrency exchange, Binance, reportedly dismissed the head of its market surveillance team after he expressed apprehension about potential market manipulation by a well-known client, according to recent allegations reported by The Wall Street Journal and sources with former internal connections to Binance. The said client, DWF Labs, a firm managed by a popular crypto trader, was found to be involved in pump-and-dump schemes and wash trading activities on Binance. Such actions are a direct infringement of the exchange's user agreement terms.

The story further discusses how leadership at the exchange refused the surveillance team's suggestion of excluding DWF from their platform. Following this, several team members, including the head, were dismissed, or they quit. Binance has since issued a public statement highlighting its strict market monitoring program and zero tolerance for market abuse.

So far, Binance claims to have removed approximately 355,000 users, accounting for transactions exceeding $2.5 trillion, citing violation of their user agreement terms. The story concludes with Binance's previous legal troubles related to anti-money laundering infringement and misleading investors about its risk management controls and trading practices. Furthermore, it also highlights the questions raised about Binance's commitment to preventing market abuse and manipulation on its platform.