The Wall Street Journal published one exclusive report on May 9 claimed that Binance, the world’s largest crypto exchange, had fired the head of its market monitoring team after he raised concerns about possible market manipulation by a high-profile client.
According to former Binance insiders interviewed by the Journal, the surveillance team had discovered suspicious trading activity by DWF Labs, a company run by a “Lamborghini-loving crypto trader” who had quickly become one of Binance’s top clients. The team’s investigation concluded that DWF engaged in pump-and-dump schemes and wash trading on Binance, violating the exchange’s terms of use.
However, when the surveillance team reportedly submitted a report recommending DWF’s removal from the platform, Binance’s leadership rejected the findings and fired the team’s head, the Journal reports. Several other researchers were subsequently fired or voluntarily quit.
In response to the Journal’s reporting, Binance issued a rack on X, confirming its ‘strict market surveillance programme’ and stating that it will not tolerate market abuse. The exchange said it has banned nearly 355,000 users with a transaction volume of more than $2.5 trillion over the past three years for violating its terms of use.
Binance added that “competition among market makers is fierce,” and that the research team’s job is to “be neutral and look at the evidence without any bias, including bias that might arise from the claims of market making companies against their competitors.” aims to ensure healthy competition and protect users against manipulation.
DWF Labs too responded on what it called “baseless” accusations that “distort the facts.” The company stated that it “operates with the highest standards of integrity, transparency and ethics” and remains committed to supporting its more than 700 partners in the crypto ecosystem.
The accusations come as Binance faces increasing scrutiny. In 2023, the exchange pleaded guilty to violating U.S. anti-money laundering requirements and agreed to pay $4.3 billion in fines. Founder Changpeng Zhao also stepped down as CEO and was sentenced to four months in prison.
The Securities and Exchange Commission has also filed civil charges accusing Binance of misleading U.S. investors about its risk management and trading practices. Previous reporting by the Journal linked Zhao to two trading firms operating within Binance’s U.S. arm and raised concerns about the independence of their operations and compliance oversight.
The dismissal of the whistleblower and his team raises further questions about Binance’s commitment to prevent market abuse and manipulation on its platform. While the exchange insists it does not favor any user and prioritizes platform security, the Journal’s reporting suggests it has sometimes put the interests of profitable customers ahead of market integrity concerns raised by its own researchers .