Binance Offboards A Market Maker For Misconduct

Binance has recently taken swift action against a market maker involved in misconduct surrounding the GoPlus Security (GPS) and MyShell (SHELL) projects. 

In an effort to maintain market integrity and protect its users, Binance offboarded the offending market maker and confiscated its ill-gotten gains to compensate affected investors.

The Incident: What Happened?

According to Binance’s official announcements, an investigation revealed that between March 4, 2025, 13:00 (UTC) and March 5, 2025, 09:55 (UTC), the market maker sold approximately 70 million GPS tokens without placing any corresponding buy orders. 

This one-sided trading strategy allowed the market maker to profit by nearly $5 million, leading to abnormal price fluctuations that prompted further scrutiny. 

Such irregular trading practices raised concerns of market manipulation and unfair trading behavior that could compromise the trust of investors.

Binance’s Decisive Response

In response to these findings, Binance acted decisively to preserve the integrity of its trading environment. The market maker was permanently delisted from the platform, barring any future market-making activities. 

Moreover, all proceeds generated from the misconduct have been confiscated. These funds will be used to compensate users who were adversely affected by the market manipulation. 

Although the detailed compensation plan is still under final review by the respective project teams, Binance has reaffirmed its commitment to protecting its community and ensuring fair trading practices.

Implications For The Crypto Market

This move by Binance sends a strong message to all market participants: any attempt to manipulate the market will not be tolerated. 

By enforcing strict compliance and transparency standards, the exchange not only mitigates immediate volatility but also reinforces long-term confidence among investors. 

In the wake of the incident, both GPS and SHELL holders can expect enhanced protective measures that aim to stabilize prices and prevent similar misconduct in the future.

Binance Looks To Tighten Compliance Rules

Binance’s actions underscore the importance of robust regulatory frameworks and diligent monitoring within the crypto market. 

As investigations continue, the exchange is likely to roll out additional measures to further tighten compliance rules for market makers. 

Investors are encouraged to stay informed about ongoing developments and review official communications from Binance regarding future compensation plans.

Also read: Binance To Introduce New “Vote To List” And “Vote To Delist” Mechanisms.