- Binance has denied allegations that accuse the exchange of manipulating crypto market prices.
- An anonymous user had claimed that Binance “purposely pumps/dumps the price to take them out for profit.”
- Binance says it aims to become fully regulated in the near future.
Binance has denied allegations that accuse the exchange of manipulating the crypto market prices. The company claims it has never traded against its users and seeks to maintain trading integrity.
In a recent Twitter statement, the world’s largest cryptocurrency exchange in terms of volume asserted that it has never worked against user interests, denying market manipulation accusations. “Binance has never traded against our users nor manipulated the market, and we never will,” a Binance representative said.
While it is not clear if the firm was referring to any particular incident, the statement is speculated to be directed at RealFulltimeApe, an anonymous user who claims to be Binance’s ex-employee. RealFulltimeApe recently alleged that Binance “keeps an overview of big liquid levels and purposely pumps/dumps the price to take them out for profit.”
The anonymous user added:
I have multiple audio and video files inside the office in which management is CLEARLY talking about ‘quickly’ liquidating the overleveraged ‘longs and shorts’ before allowing price to continue up/down, in order to increase the companies’ insurance fund & profits.
In response to the allegations, Binance has said that it “places utmost importance on client experience and trading integrity.” The company also hinted that they are striving to become fully regulated, and expects to counter fewer “FUD-peddlers and individuals with malicious intent, including the impersonation of Binance employees.”
In November 2020, Binance sued the popular media outlet, Forbes, for defamation after it published a story about the “Tai Chi” document. In the article, Forbes attempted to reveal how Binance was evading regulations in the US.
The company ostensibly hinted at that incident and warned the accuser of possible consequences. “Binance reserves the right to take legal action to protect its interests and welcomes responsible whistle-blowing that protects the trust of our community,” it said.
Binance Strives to Become Fully Regulated
The largest crypto exchange has been under regulatory scrutiny for the last couple of months. A number of jurisdictions have accused Binance of operating unlicensed businesses within their geography, while dozens of regulatory bodies have filed complaints against the company.
This has ostensibly pushed Binance to adopt regulations. In late July, Binance’s CEO announced that the exchange would become a fully regulated financial institution. In the first step, Binance unveiled its intentions to double its compliance team by the end of the year.
The exchange has even enhanced its KYC obligations. As of now, every Binance user is required to complete “Intermediate Verification” prior to using the company’s products, including trading cryptocurrencies. More recently, Binance hired Greg Monahan, a former U.S. government criminal investigator, to lead its global money-laundering operation.