Market News

Binance and Coinbase Under Scrutiny as WLFI Investment Scandal Unfolds

World Liberty Financial (WLFI) has recently made headlines after receiving a $100 million investment from a company that appears linked to banned altcoins.

An investigation revealed that Aqua1, originally thought to be the investor, is actually a shell corporation masking the real financier, Web3Port, notorious for its involvement in past scandals.

Web3Port had previously manipulated the MOVE token sale, resulting in significant financial losses for investors and drawing the ire of major cryptocurrency exchanges.

Binance uncovered the manipulation, identifying a market maker named Rentech, who was affiliated with Web3Port, and subsequently removed MOVE from its platform.

In a related move, Binance seized $38 million in proceeds from Web3Port's illicit activities, collaborating with Movement Labs for a buyback strategy to salvage the token's depreciated value.

Coinbase followed suit, delisting MOVE and taking preemptive measures against any associated market manipulators.

The broader implications of this scandal raise questions about the due diligence exercised by exchanges like Binance and Coinbase when considering token listings.

In another development, the Pi Network continues to struggle for a listing on these major exchanges due to concerns over transparency and security.

Without a fully open-sourced platform or a third-party security audit, analysts suggest Pi's potential application may not even have been submitted.

These unfolding events underscore the importance of regulatory scrutiny and investor protection in the rapidly evolving landscape of cryptocurrency.