Binance News: Exchange Removes Market Maker Linked to GPS and SHELL Projects, Compensates Affected Users

Binance, one of the world’s largest cryptocurrency exchanges, has taken decisive action against a market maker accused of irregular trading practices involving two specific projects - GoPlus Security (GPS) and MyShell (SHELL). Here’s a closer look at what happened and the consequences of the exchange’s decision.

Binance Removes Market Maker Linked to GPS and SHELL Projects, Compensates Users

Binance has taken action against a market Maker involved in irregular trading practices for the GoPlus Security (GPS) and MyShell (SHELL) projects. The exchange found that the market maker had performed questionable market-making activities for both projects, resulting in the sale of 70 million GPS tokens and a significant price drop. Binance has removed the market maker from the platform, prohibited further market-making actions, and imposed a risk quiz requirement for GPS traders every 90 days. Additionally, Binance has compensated affected users.

Binance Shuts Down Market Maker Over Misconduct, Affected Users to be Compensated

Binance has banned a market maker linked to GoPlus Security and MyShell after detecting trading irregularities. According to a Mar. 9 announcement, the exchange has terminated the entity from market-making activities and confiscated its proceeds to compensate affected users. The details of the compensation plan will be announced later by the respective projects. Market makers ensure smooth trading and lower price volatility, but unethical practices such as order book manipulation can distort prices.