Avalanche CEO Accused of Wash Trading—Insider Scandal

A whistleblower has leaked documents accusing Ava Labs, the company behind Avalanche $AVAX , of engaging in massive wash trading on its DEX, Trader Joe. The scandal includes faked volumes and coordinated pump-and-dump schemes with partner projects. AVAX plummeted 35% as investor trust evaporated. Regulators are reportedly preparing subpoenas, and major market makers are distancing themselves. Rival ecosystems like Polkadot $DOT and Cosmos (ATOM) are seizing the moment to attract AVAX developers. If proven, this could be one of the biggest insider scandals in DeFi history.