FTX's Alleged Involvement in Binance's Wash Trading Scheme Raises Concerns
An investigation by Forbes suggests that FTX, the bankrupt exchange of Sam Bankman-Fried, may have played a significant role in facilitating wash trading activities for Binance's exchange token BNB. From November 2019 to November 2022, Binance sent $4.6 billion worth of BNB to FTX, with 87% of it being forwarded to Binance.US. The transactions were designed to conceal their origin and lacked the randomness typically found in market-related trading. The SEC has accused Binance of wash trading, and the transactions identified by Forbes and Gray Wolf Analytics indicate a potential effort to conceal token flows and get them into the hands of Binance.US and Sigma Chain. FTX's involvement in facilitating this activity is still unclear, and further investigation is needed to understand the relationship between FTX and Binance, as well as Sigma Chain's trading activity.
