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Binance has announced that it has taken decisive action against a market maker involved in allegations of irregularities involving GoPlus Security (GPS) and MyShell (SHELL).
Following an internal investigation, Binance found that the same market maker responsible for GPS market activities was also involved in MyShell’s market making activities. In response, Binance removed the entity from its platform and banned it from conducting any further market making activities.
Binance has implemented the following measures to protect its users and maintain market integrity:
- Market Maker delisted: The designated market maker has been removed from the system and is now prohibited from conducting any market making operations on Binance.
- Revenue Forfeiture: Revenue associated with the market maker’s activities has been forfeited. These funds will be used to compensate users affected by irregularities in the GPS and SHELL markets. Specific compensation details will be announced by the respective projects at a later date.
Binance reiterated the importance of adhering to market making principles, which include:
- Placing both buy and sell orders to ensure balanced market activity.
- Maintaining adequate order size within established depth levels.
- Maintaining a stable spread to support market efficiency.
- Preventing disruptions caused by excessively high frequency order placement and cancellations.
*This is not investment advice.
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