The exchange referred to legal action against “FUD-peddlers and individuals with malicious intent” who posed a danger to the company’s business interests.
Binance, the world’s largest cryptocurrency exchange, is defending itself against accusations of market manipulation and working against the interests of its consumers. Binance appeared to place the blame for any allegations of market manipulation on publications that create fear, worry, and doubt, as well as certain individuals impersonating exchange personnel in a Monday Twitter discussion. The firm stated that while it “reserves the right to pursue legal action to preserve its interests,” it is not opposed to “responsible whistleblowing that safeguards the community’s trust.”
“Binance has never traded against our users or attempted market manipulation, and we will never do so,” the exchange stated. It is unclear whether the exchange was referring to a specific instance, but the comment comes after a pseudonymous Twitter user going by the handle RealFulltimeApe claimed on Saturday that Binance “keeps an eye on large liquidity levels and purposefully pumps/dumps the price to profit from them.” The user claimed to be a former “big data engineer” at the exchange and that he would “provide proof shortly,” but had 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 allowing price to continue up/down, in order to increase the companies’ insurance fund & profits,”
Authorities in a number of countries, including Italy, Malaysia, Poland, Germany, the United Kingdom, the Cayman Islands, Thailand, Canada, Japan, Singapore, and the Netherlands, have issued warnings to investors about the company or asserted that it was operating unlawfully. Regulators’ concerns undoubtedly resulted in some banking institutions ceasing to allow consumers to transmit money to the exchange.
Additionally, the exchange is the subject of multiple class-action lawsuits alleging that it breached its futures trading guidelines. Lexia Avvocati, an Italy-based legal and consulting firm, announced in July that it was representing investors who lost “tens of millions” of dollars due to their inability to manage their trading positions and view their balances as a result of the crypto exchange going offline for several hours on various days. Liti Capital, a litigation funding company based in Switzerland, made similar charges in an August class-action lawsuit.
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