Important allegations have been made about Binance and DWF Labs, known for its investments in cryptocurrencies, which has had a difficult time in the US, paid a historic fine and its former CEO CZ was sentenced to 5 months in prison.

According to the US media outlet Wall Street Journal, Binance’s Crypto Tracking Team detected a manipulation by DWF Labs. The manager/employee or employees who revealed this manipulation were dismissed by Binance. It was also written in the news that DWF Labs earned $ 300 million in 2023 through fake volumes, also known as “wash trade”.

Looking at the news, it is thought that Binance management would not want DWF Labs’ manipulation to be revealed. Binance, on the other hand, has not yet broken its silence on the issue around 13 pm.

DWF Labs issued a statement denying the allegations and said, “Most of the allegations are distorted and unfounded.”

Was the fired executive working with DWF’s competitors?

The WSJ article also reported that 2/3 of Binance’s volume was provided by VIP customers, and the following statements were used:

“Binance was getting 2/3 of its volume from VIP customers. The surveillance and monitoring team had taken the Tron Foundation out of the VIP customer group. Recently, suspicions about DWF were increasing. However, Binance’s compliance manager was not satisfied with these complaints. He thought there was not enough evidence. The compliance manager also believed that the monitoring team had close ties with DWF’s competitors.

In the news of WSJ, it was written that Binance found that DWF Labs manipulated a total of 6 tokens together with YGG. It was stated that DWF Labs sold 5 million tokens at the peak prices of 2023.

However, Binance management thought that DWF transactions were actually smooth buy-sells. There was a claim that this was not a manipulation. Binance thought that the real perpetrator of the fraud was the tracking manager “working with DWF Labs’ competitors”.