Financial statements or credible financial news reports

WSJ: Binance Allowed Market Manipulation, Offboarded 355K Users

May 9, 2024, 09:49 AM

Recent reports from The Wall Street Journal indicate that Binance Holdings Ltd. has been involved in allowing market manipulation on its cryptocurrency exchange platform. The allegations suggest that Binance overlooked evidence of market manipulation and even terminated an internal investigator who raised concerns. This situation escalated when a high-rolling client, known for extravagant purchases like Lamborghinis, was implicated. Despite Binance's claims of a rigorous market surveillance program, which has led to the offboarding of nearly 355,000 users for violations over three years, insiders argue that the company has prioritized its relationships with VIP customers, who account for two-thirds of the trading volume. These VIPs include entities like the Tron Foundation, which was removed last summer. The monitoring team also recommended removing DWF, but the head of Binance VIP complained, leading to concerns within Binance's compliance department.