DWF Labs Denies DEXE Manipulation Claims

Key Point

DWF Labs founder Andrei Grachev said rumors that the firm orchestrated DEXE price manipulation were baseless. Grachev said all trades were executed on centralized exchanges and could be verified by those venues through the firm’s UID. Grachev said DWF Labs bought a large amount of DEXE in 2024, sold part of its holdings in 2025 to raise cash, bought again around Oct. 10, hedged first-half profits this year, closed its short position after futures funding rates turned negative, and sold spot DEXE holdings to complete the cash-out. Choc alleged that DWF Labs made about $40 million through DEXE manipulation and said DEXE has fallen more than 90%.

Market Sentiment

Cautiously Bearish, Event-driven, Volatile.

Reason: DWF Labs denied DEXE manipulation claims after Choc alleged about $40 million in profit, which keeps trust risk elevated around the token.

Similar Past Cases

This type of market-maker allegation typically creates short-term confidence pressure for the affected token and related trading venues. The outcome often depends on whether verifiable trading records support or weaken the public claims. The difference is that this case centers on exchange UID records that Grachev says can verify the trades.

Ripple Effect

Verification records could limit the impact if venues confirm DWF Labs’ trading explanation. If verification does not arrive, the allegation could keep liquidity providers and retail traders cautious around DEXE.

Opportunities & Risks

Opportunities: The key watchpoint is whether centralized exchanges verify the UID trade history. Clear verification could reduce uncertainty around DEXE trading activity.

Risks: The key risk is that no verification appears or new allegations continue. Continued uncertainty could keep DEXE exposed to weaker liquidity and lower retail confidence.