Binance blocks Market Maker after serious misconduct, retains its profit and wants to compensate customers
- Binance has permanently blocked a market maker after unethical trade in GPS and Shell tokens, withhold profits and compensate for affected customers.
- The stock exchange tightened its rules and warned Market Maker of manipulation, while at the same time introducing the community with new token notes.
The KryptoBörse Binance quickly reacted to a market maker who was involved in suspicious trade in connection with Goplus Security (GPS) and Myshell (Shell). The investigations Confirmed unethical practices, which led to a permanent lock. Binance also retains the profits achieved by this misconduct and will compensate with this affected customer.
Binance announced that after investigating the misconduct of the market maker for GoPlus Security (GPS), it discovered that the same market maker was also responsible for the market making of the MyShell (SHELL) project. To protect users, Binance has delisted this market maker…
— Wu Blockchain (@WuBlockchain) March 9, 2025
Market Makers ensure liquidity and stabilize the prices in the crypto trade. However, manipulating order books for an unfair advantage creates financial risks for dealers. Binance confirmed his strict policy against violations and thus demonstrated his permanent attitude to maintain integrity within his commercial ecosystem.
A binance spokesman emphasized the company’s focus on fair trade and said that the protection of users and fairness is a top priority. He said:
“The protection of our users and maintaining a fair trade environment remain our top priorities. This incident underlines our proactive approach to identify and combat misconduct, and we will further improve our surveillance systems to prevent future violations. ”
Binance takes action against MM after suspicion of manipulation
The trouble started when Binance noticed something strange with the GPS right after the listing. Within a few days, the token was given a monitoring day due to erratic price fluctuations, which caused concerns about market manipulations. Later, the stock exchange identified a single market maker as the cause of a quick sale of 70 million GPS tokens. This campaign led to a liquidity outflow of around $ 5 million and added severe losses to the first dealers.
Further investigations showed that the same market maker was involved in transactions with Shell token and thus violated the market participation against the bony guidelines. The company immediately removed the stock exchange and imposed a permanent ban on future activities. In order to limit the damage, binance confiscated the illegal profits and assigned the funds to the affected GPS and Shell token owners.
Although Binance acted determined, the exact compensation plan for the users concerned must still be announced. However, the company assured the dealers that details are announced for claims, distribution mechanisms and payout periods in the coming days.
More efficient regulation and new notification procedure
In response to the increasing concerns about market integrity, Binance announced that his token listing and delisting process was revised. According to the updated guidelines Users can vote with more than 0.01 BNB about whether tokens remain on the stock exchange. The final decisions are at Binance, but the change introduces the supervision of the community.
A tough struggle against a dubious market maker underlined the strict enforcement of the trade guidelines. Binance warned all market makers to adhere to the regulations, maintain fair money briefs and to avoid disorders through excessive order and cancellations.
While the regulatory challenges shape the crypto landscape, Binance founder Changpeng Zhao spoke about the ethics of the industry. On March 10, he explained that excessive capital flows into short -term profits instead of supporting ethical teams that focus on sustainable growth. He emphasized patience and strategic investments as the key to long -term success.
Unpopular opinion:
In crypto, too much money is spent chasing small, quick gains. Focus on ethical teams that build for the long term. Big money is built slowly with stamina.
— CZ
BNB (@cz_binance) March 9, 2025
No Comments