DWF Labs, a crypto trading and market-making firm, has vehemently denied reports of engaging in $300 million of wash trading on Binance in 2023. The company took to its Telegram channel to address the allegations, stating that a recent article contained unfounded claims that do not reflect their ethical business practices.

The Wall Street Journal had alleged that Binance's surveillance team found evidence of market manipulation by DWF Labs, including the manipulation of the YGG token and six other tokens, resulting in over $300 million of wash trades. However, Binance launched an investigation into the surveillance team's findings and claimed that there was insufficient evidence to support the allegations.

Binance emphasized that it has a robust market surveillance framework in place to identify and take action against market abuse, and that any users who breach their terms of use are promptly off-boarded. The exchange also stated that it has off-boarded nearly 355,000 users with a combined trading volume of $2.5 trillion for platform violations in the last three years.

DWF Labs' denial of the allegations comes amidst reports that the firm offered clients the ability to artificially drive up token prices and create "artificial volume." Binance has expressed concern over these allegations, stating that if true, it would be very concerning to them and other participants in the market.