Binance, the world’s largest cryptocurrency exchange, has reportedly removed the ability to conduct Time Weighted Average Price (TWAP) trading for Barry Silbert’s Digital Currency Group (DCG). Potential reasons behind the move include legal risks amid Genesis’ bankruptcy and an investigation by the US Department of Justice (DOJ).
Binance Suspends DCG Crypto Trading
crypto influencer andrew Tweet On January 24th, it was revealed that many unconfirmed rumors indicated that Binance “ruled out” DCG’s Time Weighted Average Price Algorithm (TWAP) trading strategy and potential trades.
There are a lot of ‘unconfirmed’ rumors of ‘B.Finance It is possible to eliminate DCG’s ability to make TWAP transactions and trade entirely. ”
Reasons for that could include legal risks, a U.S. Department of Justice investigation, and API’s closure after DCG’s lending business, Genesis Capital, filed for Chapter 11 bankruptcy, he said. I was. In a subsequent tweet, Andrew claimed that Binance would likely stop trading, saying, “Now please remove ‘unconfirmed’ from above.”
The US Department of Justice and the Securities and Exchange Commission have expanded the scope of the DCG investigation. In addition, the agency asked her DCG and Genesis to provide details regarding intercompany transfers and loans.
Two weeks later, Genesis Capital, the lending arm of Genesis Trading, filed for Chapter 11 bankruptcy. Largest creditors include Gemini with 765 million, Bybit’s Milana with 151 million, Babel Finance with 150 million, Coincident Capital with 110 million, and 50 other largest unsecured loans It is included.
Binance faces heat after FTX crisis
Cryptocurrency exchange Binance has been under constant attack from critics over its lack of transparency. The audit firm Mothers, which provided margins to Binance, suspended services to crypto companies and removed margin reports from its website, has raised questions.
Binance CEO CZ said the company stepped up its global compliance, transparency and user protection initiatives despite the FUD. Meanwhile, a US federal government investigation into Binance is ongoing for alleged violations, including unauthorized money transfers, money laundering conspiracies, and criminal sanctions violations.
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