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 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 Bhas 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 said that Binance is probably in the process of shutting down transactions, saying "Now, remove the "unconfirmed" from the above."
Justice and Securities Canada. In addition, the agencies asked dcg and genesis to provide details on internal transfers and business-to-business lending.
After a couple of weeks, Genesis Trading went out of business. The largest creditors comprise with 765 million, the bybit mirana with 151 million, Babel finances with 150 million, capital coinciding with 110 million, and 50 other largest unsecured receivables.
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.
, 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.
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- Digital Currency Group
- Genesis