Binance Bans Market Maker and Seizes Funds Following Investigation into Misconduct
Binance has removed a market maker from its platform and seized its funds following an investigation that revealed misconduct by the entity.
While the exchange did not name the market maker, it confirmed that the firm had been providing liquidity for the decentralized security protocol GoPlus Security (GPS) and the AI-driven consumer project MyShell (SHELL).
The exchange’s actions were aimed at reimbursing users who were affected by the market maker’s actions. Binance took these steps after GoPlus Security’s native token, GPS, dropped more than 71% in value within a week following its listing on Binance.
READ MORE: Tether’s USDT Gains Legal Approval in Thailand
In response to the significant price drop, GoPlus Security quickly addressed rumors suggesting that an insider had leaked information about the Binance listing. The project clarified that its team had no prior knowledge of the March 4th listing, and the announcement came as a surprise to them. GoPlus emphasized that it cooperated fully with Binance in managing the situation.
Meanwhile, MyShell confirmed it had severed ties with the market maker and suspended all Binance accounts associated with it. The project outlined plans to transfer all assets to new market makers and vowed to use the proceeds to buy back SHELL tokens, ensuring full transparency with wallet addresses to verify the process. The company also pledged to work with Binance to maintain public visibility throughout the buyback.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
