Claim CardBinance Reportedly Eliminates DCG’s TWAP Trades Citing Legal Risks
The world’s largest crypto exchange Binance has reportedly eliminated Barry Silbert’s Digital Currency Group’s (DCG) ability to make time-weighted average price (TWAP) trades. The potential reasons behind the move involve legal risks amid Genesis bankruptcy and investigations by the U.S. Department of Justice (DOJ).
Binance Stops Crypto Trades by DCG
Crypto influencer Andrew in a tweet on January 24 revealed that lots of unconfirmed rumors signal that Binance has “eliminated” DCG’s time-weighted average price algorithm (TWAP) trading strategy and potential transactions.
“Lots of ‘unconfirmed’ rumors that Binance has eliminated DCG’s ability to TWAP trade and potentially trade altogether.”
He said the reasons may include legal risks, a US Department of Justice investigation, and an API shutdown after DCG’s lending business Genesis Capital filed for Chapter 11 bankruptcy. In a subsequent tweet, Andrew claimed that Binance is likely stopping transactions, saying “Now remove the ‘unconfirmed’ from the above.”
The U.S. Department of Justice and the Securities & Exchange Commission have expanded the scope of the investigation of DCG. Moreover, the agencies asked DCG and Genesis to provide details on internal transfers and loans between the firms.
After two weeks, Genesis Trading’s lending arm Genesis Capital filed for Chapter 11 bankruptcy. The largest creditors include Gemini with 765 million, Bybit’s Mirana with 151 million, Babel Finance with 150 million, Coincident Capital with 110 million, and 50 other largest unsecured claims.
Binance Faces Heat After the FTX Crisis
Crypto exchange Binance has been under continuous attack by critics over a lack of transparency. Questions were also raised after audit firm Mazars, which provided proof-of-reserves for Binance, suspended services for crypto companies and removed the proof-of-reserves report from its website.
Despite FUD, Binance CEO CZ said the firm has increased global compliance, transparency, and user protection initiatives. Meanwhile, a U.S. federal investigation into Binance has been ongoing on alleged violations including unlicensed money transmission, money laundering conspiracy, and criminal sanctions violations.
Also Read: 5 Reasons Why Bitcoin (BTC) Price Rally Is Likely Over
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- US Senator Launches Probe Into Binance After Fortune Report on Sanctions Violations
- CLARITY Act Odds, Bitcoin Drop as Trump Skips Crypto in State of the Union Speech
- Tokenized Stock Market Gains Boost as Kraken and Binance Launches New Products
- Peter Schiff Casts Doubt on Bitcoin Rally Ahead of Trump’s SOTU Speech
- Putin Signs Law to Confiscate Bitcoin Amid Russia’s Crypto Crackdown, Pavel Durov Probe
- Cardano Price Signals Rebound as Whales Accumulate 819M ADA
- Sui Price Eyes Recovery as Third Spot SUI ETF Debuts on Nasdaq
- Pi Network Price Eyes a 30% Jump as Migrations Jumps to 16M
- Will Ethereum Price Dip to $1,500 as Vitalik Buterin Continues Selling ETH?
- XRP Price Outlook as Clarity Act Passage Odds Plunge to 53%
- COIN Stock Risks Crashing to $100 as Odds of US Striking Iran Jump
