Binance—Binance engaged in market manipulation through affiliate Sigma Chain
SEC alleged Binance used Sigma Chain, a trading firm owned by CZ, to inflate trading volumes through wash trading. The firm reportedly executed over $300 million in wash trades.
Scoring Impact
| Topic | Direction | Relevance | Contribution |
|---|---|---|---|
| Consumer Protection | -against | primary | -1.00 |
| Corporate Transparency | -against | secondary | -0.50 |
| Overall incident score = | -0.643 | ||
Score = avg(topic contributions) × significance (high ×1.5) × confidence (0.57)
Evidence (1 signal)
Confirms Legal Action Jun 5, 2023 documented
SEC filed complaint alleging Binance wash trading via Sigma Chain
The SEC filed a complaint alleging that Binance used Sigma Chain, a trading firm owned by CZ, to inflate trading volumes through wash trading totaling over $300 million.