Investigation Findings and Alleged Coordination
PancakeSwap is facing scrutiny after an investigation suggested that nearly half of the winners in its trading draws may have been connected, raising serious doubts about the randomness and fairness of its promotions. The report indicates that at least 850 winning wallets received funds from other winners—a pattern that points to possible coordination and artificial volume inflation.
This activity involved BNB transfers among linked accounts to meet minimum trading volume requirements, a practice resembling wash trading. By creating the appearance of activity without genuine market participation, these actions undermine the integrity of the draw and distort liquidity metrics.
PancakeSwap has not yet issued an official statement. It remains unclear whether the platform will conduct audits, review results, or disqualify suspicious entries. A representative from League of Traders(LOT), one of the sponsoring projects, stated that “the prizes were not distributed fairly,” adding that winners appeared “chosen rather than randomly selected”—highlighting concerns over internal controls and eligibility enforcement.
Campaign Structure, Rules, and Timeline
The promotion required users to trade specific tokens—including $BR, $LOT, $MILK, $NODE and $MORE—on PancakeSwap Perpetual V2 (On-Chain) across supported networks like BNB Chain, Arbitrum, Base, and opBNB. Launched on February 13, 2025, the campaign offered a total prize pool of $10,000 in a lucky draw format.
According to the rules, only trades made directly through PancakeSwap’s interface were eligible—aggregator trades were excluded. The protocol also reserved the right to disqualify participants engaged in wash trading or market manipulation. However, the investigation suggests these safeguards may have failed in this instance.
The report was published on September 12, 2025.
The alleged coordination among winners carries both operational and reputational consequences. It erodes trust in DeFi promotions, complicates partner compliance with KYC and anti-manipulation policies, and could attract greater regulatory scrutiny. The next key development will be PancakeSwap’s official response and any corrective measures, which will heavily influence user confidence and future oversight of similar campaigns.
