Binance Responds to Market Manipulation Accusations
Binance has finally addressed online accusations from traders who claim the exchange manipulated the market by ‘dumping’ millions of SOL and ETH tokens via Wintermute.
In a recent post by the Binance Customer Support account, the exchange responded to a trader who pointed out on-chain data indicating that Binance’s hot wallet transferred millions of Solana (SOL) and Ethereum (ETH) tokens from its holdings on February 24. The trader accused the exchange of ‘dumping on everyone’ by offloading these tokens.
In its reply, Binance denied the accusations of ‘dumping’ or ‘selling’ millions of tokens. The exchange stated that many traders have simply ‘misunderstood’ the on-chain transactions involving Wintermute.
> Hello there,
>
> Binance hasn’t ‘dumped’ or ‘sold’ large amounts of tokens as some tweets have misunderstood. As an exchange, we simply help users match trades and we have no visibility into our users’ decisions, including market makers who may move their assets according to their strategies.
> — Binance Customer Support (@BinanceHelpDesk) February 26, 2025
The exchange cautioned traders against jumping to conclusions based on transaction screenshots and encouraged them to recognize tactics that induce fear, uncertainty, and doubt (FUD) in the market.
Additionally, Binance urged users to learn about how market makers like Wintermute operate to better understand their role in providing liquidity.
On February 24, Arkham Intelligence revealed that Binance moved at least 103,570 SOL (valued at $16.32 million) and around 25,000 ETH (worth $80 million) to market maker Wintermute. Many traders interpreted these actions as Binance selling or dumping these tokens from its crypto holdings through Wintermute.
Investors and traders viewed the event as a sign that Binance may be preparing for market fluctuations that could impact liquidity and trading volumes for SOL and ETH. Just a day later, the cryptocurrency market saw a collapse, with Bitcoin’s price dropping below $90,000, leading to over $1 billion in liquidations.
At that time, traders accused Binance, Bybit, and other major centralized exchanges of ‘manipulating’ the market through significant sell-offs and price capping, though no conclusive evidence supports these claims.
In a shared link, Binance highlighted that it implements a market surveillance program designed to detect and prevent market manipulation, ensuring a ‘fair trading environment.’
Why Did Binance Send Tokens to Wintermute?
Market makers are firms that specialize in providing liquidity in the crypto market by placing buy and sell orders. This process helps tighten bid-ask spreads and facilitates smoother trading activities. Market makers play a critical role in absorbing large orders, reducing price declines, and contributing to market stability.
Exchanges like Binance typically partner with market makers by supplying them with tokens as an incentive to maintain and enhance liquidity. Analysts have explained that Binance was not selling the tokens to Wintermute; instead, Wintermute was withdrawing the tokens from Binance’s holdings to support market liquidity.
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