The world’s largest cryptocurrency exchange Binance has been under fire for a long time after the collapse of FTX. In particular, the audit firm Mazars was heavily criticized for its ambiguous evidence of reserves. Cooperation stopped with the exchange immediately following.
However, at the end of the year, the criticism has died down and Binance has disappeared from the spotlight DCG And Genesis became the crypto industry’s biggest headache. But Conor Grogan, head of product business operations at Coinbase, today made serious new allegations against Binance.
In Twitter Thread, Grogan wrote that “Binance has been a front-running model” for 18+ months. He found wallets linked to Binance that were buying $900,000 RARI before the listing and dumped them a few minutes later.
It also found an incident where around 78,000 ERN were bought between June 17 and 21 and sold shortly after the listing was announced. The same was done with TORN, where “millions were bought and sold immediately after the announcement.”
Another example is the purchase of RAMP, worth over $500,000, over several days, “before sending it to Binance minutes after the listing announcement. Assuming they sold it for a ~100K salary.” It was the day of Grogan explained:
I found all this by looking at the original wallet’s OKX deposit address and looking at other counterparty wallets. Not great opsec by them. I just started digging to find more examples.
According to the Coinbase exec, there could be various reasons for the move ahead. Most likely, according to Grogan, there is internal MNPI (material non-public information) run by a rogue employee who is connected to the listing team and has details of new asset announcements.
Another explanation could be a trader looking for a leak in an API or test trade exchange. In any case, regulators and law enforcement are likely to be very interested in the case, as evidenced by recent insider trading cases against Coinbase.
Bitcoin price manipulation by a monolithic entity at Binance?
Specifically, rumors surfaced last week that the entire Bitcoin move from $17,000 to $21,000 was initiated by an entity at Binance. First, an anonymous trader pointed to a move fueled by a BUSD stablecoin whale, citing BTC Spot CVDs (aggregate volume delta). On January 15, he shared the following chart and wrote:
The entire move from 17k to 21k was made by someone aggressively buying Bitcoin with BUSD on Binance. Other exchanges started buying around 19.5k with USDT + USD. Green CVD also includes all exchanges with Binance USDT, Yellow CVD – BUSD only.
Yesterday, the trader wrote that both CVDs are showing Bitcoin’s bearish divergence from yesterday. “Green line – spot CVD with all stablecoins including our beloved BUSD, blue line – perps CVD with all stablecoins. Looks like passive sellers won this time,” the trader said. said.
However, the trader also clarified that while he was the first to report large BTC purchases with BUSD on Binance, he never mentioned the words “cartel” or “manipulation.”
At press time, the price of Bitcoin was once again attacking the $23,000 level.
Featured image from iStock, charts from Twitter and TradingView.com
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