Binance denies accusations of market manipulation
Binance, a major crypto currency exchange, has denied allegations of working against the interest of users and manipulation of crypto markets.
In a Twitter thread on Monday, Binance clarified that it is not involved in any kind of market manipulation, and all such claims are merely spreading fear, doubt and uncertainty. It also claimed the presence of individuals impersonating employees at Binance being responsible for the recent allegations. The firm reserves the right to appeal legally to protect its interest.
Although it isn’t sure whether Binance’s Twitter thread was referring to a specific incident or not, but the post came after a Twitter user @RealFulltimeApe alleged on Saturday that the crypto exchange giant “purposely dumps the price” to withdraw them for profits. The user has claimed to be a “big data engineer” at the exchange formerly and said they would be “providing proof soon” for the accusations. At the time of writing this news, no evidence has come out yet.
The user has also claimed that Binance’s office premises have multiple audio and video proofs where its management is “CLEARLY talking about ‘quickly’ liquidating” overleveraged ‘longs and shorts’ before the price can continue up or down so that the companies’ insurance funds and profits increase.
Binance has been under the regulatory lens of several countries, including Malaysia, Italy, Germany, Poland, the Cayman Islands, Thailand, Japan, Canada, the United Kingdom, Netherlands and Singapore. The country’s legal authorities have raised questions about its illegal operations, thus leading many financial institutions to disallow customers from sending any payments to the exchange.
Binance has also been in the news lately for allegedly violating rules on futures trading, hence being the subject of several one class-action lawsuits. Italy’s consulting firm Lexia Avvocati had announced in July 2021 on behalf of investors who suffered losses of “tens of millions” in dollars due to Binance going offline for several hours, hindering the users’ ability to manage their trading positions or view balances on different days. Switzerland-based Liti Capital, a litigation fundings provider, also noted similar allegations against Binance in a separate class-action lawsuit filed in August.