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Binance Reportedly Eliminates DCG’s TWAP Trades Citing Legal Risks

Binance reportedly eliminates Digital Currency Group's (DCG) ability to make time-weighted average price (TWAP) trades due to legal risks.
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Binance 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).

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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.

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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

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Varinder Singh

Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.

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Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and 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.
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