Binance ,a significant cryptocurrency exchange, is fighting allegations of market manipulation, which goes against the interests of its users.
There is important cryptocurrency exchange Binance is pushing against allegations of market manipulation and is going against the interest of its users. On Monday, Binance actually pointed fingers for any claims of manipulating the crypto market on publications spreading fear, uncertainty with certain individuals trying to copy employees at exchange. The firm said it “reserves the right to take legal action to protect its interests,” but was not opposed to “responsible whistle-blowing that protects the trust of our community.”
“Binance has never traded against our users nor manipulated the market, and we never will,” said the exchange. It is still not sure if the exchange was trying to mention any specific incident but the statement is known after a pseudonymous Twitter user under the name RealFullTimeApe who allegedly on Saturday said that Binance “keeps an overview of big liq levels and purposely pumps/dumps the price to take them out for profit.” The user says it to be a former “big data engineer” at the exchange and it is “providing proof soon,” but has not given any proof at the time of publication.
“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 letting the price to continue escalate so it could grow the company’s insurance fund & profits,” said the user. Binance Holdings Limited has been under the microscope in multiple countries including Italy, Malaysia, Poland, Germany, the United Kingdom, the Cayman Islands, Thailand, Canada, Japan, Singapore and the Netherlands. They are cautioning the investors in regards to the company or saying it was operating illegally. The warnings from regulators have been connected to some financial institutions no longer letting customers to send payments to the exchange.
The exchange is actually under not one but multiple class-action lawsuit saying it violated its rules on futures trading. Italy-based legal and consulting firm Lexia Avvocati declared in July it was representing investors who faced a loss of at least “tens of millions” of dollars because of failing to handle their trading positions and understanding their balances because of the crypto exchange going offline for several hours on simultaneous days.