Binance released an official report detailing actions taken against a market maker involved in irregular trading activities for GoPlus Security and MyShell.
Binance's Strict Actions
Following an internal investigation, Binance identified misconduct by the market maker servicing both projects. In response, Binance has offboarded the market maker and permanently barred them from conducting any further market-making activities on the platform.
Additionally, the platform has confiscated the market maker’s proceeds to compensate impacted users, with specific compensation plans to be outlined by the respective projects later on.
Binance emphasized the need for all approved market makers to follow strict guidelines, including maintaining adequate order volumes and bid-ask spreads. Breaches of these rules would result in serious consequences.
Denial of Market Manipulation Ties
Uncertainty surrounding the market maker’s identity has sparked widespread rumors. Despite this, leading digital asset companies have denied any involvement. Animoca Brands clearly confirmed they are not responsible for market-making for GPS and SHELL.
"In response to queries, Animoca Brands wishes to clarify it is not involved in market-making activities for GoPlus Security ($GPS) and/or MyShell ($SHELL)."
Statements from Industry Leaders
Similarly, GSR, a prominent crypto market maker, insisted they are not the market maker involved in the irregularities identified by Binance. Acknowledging their role as an investor and partner of GoPlus Security, GSR clarified they do not provide market-making services for the project.
"We can confirm that we are not the market maker referenced in Binance’s statement regarding GoPlus Security and remain committed to upholding the highest standards of integrity and transparency with our clients. As an investor and partner of the GoPlus team, we are in close contact with them and continue to offer our full support."
Instances of improper trading practices in the crypto industry highlight the importance of transparency and adherence to strict regulations. By taking decisive actions, Binance aims to maintain market integrity and protect its users.
