Cryptocurrency exchange Binance is vehemently denying allegations of market manipulation by DWF Labs, a crypto trading and market-making firm. These accusations come after a Wall Street Journal report claimed that Binance investigators uncovered evidence of DWF Labs engaging in wash trading on their platform in 2023, amounting to roughly $300 million. according to a May 9 WSJ report.

DWF Labs has also refuted these claims, calling them “unfounded.” Binance, on the other hand, maintains its stance that its robust surveillance program would prevent such activity. A spokesperson for Binance emphasized that the company has a zero-tolerance policy for market manipulation and has actively banned users exhibiting signs of such activities. They highlighted that over the past three years, Binance has removed nearly 355,000 users with a transaction volume exceeding $2.5 trillion for violating their terms of service.

The accusations against DWF Labs pertain to manipulating the price of the Yield Guild Games (YGG) token and potentially six other cryptocurrencies last year. Binance, however, maintains that its surveillance program would render such manipulation impossible.

This news story follows a period of increased scrutiny for Binance from regulatory bodies worldwide. The company has faced accusations of lax anti-money laundering (AML) controls and operating in regions with unclear crypto regulations.

The situation remains fluid, with the future actions of both Binance and DWF Labs unclear. It’s important to stay updated on developments regarding cryptocurrency regulations and their impact on the industry as a whole.