Binance has dismissed recent accusations of market manipulation leveled against DWF Labs. The allegations resurfaced after an anonymous source, claiming to be a former Binance insider, alleged that Binance investigators had uncovered $300 million worth of wash trading by DWF during 2023, as reported by The Wall Street Journal on May 9.
According to The Wall Street Journal report, DWF Labs purportedly manipulated the price of the Yield Guild Game (YGG) token and at least six other cryptocurrencies in 2023. However, Binance countered these claims by stating that its surveillance program would have detected such activities.
DWF Labs, described as a Web3 investment and market-making firm, faced similar allegations of market manipulation in September 2023, following heightened on-chain activity that drew scrutiny from crypto investors.
Wintermute, an algorithmic trading firm and market maker, was among the first to accuse DWF Labs of engaging in crypto market manipulation. During an interview at Token2049 in September, Wintermute co-founder Yoann Turpin remarked that DWF Labs “are not market makers in our sense” and suggested that they may be misrepresenting over-the-counter trades as investments.
In response to the allegations, Andrei Grachev, co-founder of DWF Labs, vehemently denied any wrongdoing.
