Binance Confiscates Market Maker’s Funds After Discovering Misconduct and ‘Market Irregularities’

Binance has banned a market maker and confiscated its proceeds after conducting an investigation that indicated the entity committed misconduct.

The top global crypto exchange didn’t disclose the identity of the market maker but noted that it operated as a liquidity provider for the decentralized security layer GoPlus Security (GPS) and the AI consumer project MyShell (SHELL).

Binance offboarded the market maker and confiscated its proceeds “for the purpose of compensating users for GPS and SHELL.”

GoPlus Security’s native token, GPS, plunged in value last week after receiving a Binance listing. The asset is down more than 71% in the past seven days.

GoPlus Security swatted down rumors that a “GoPlus team member or community moderator” leaked the Binance listing information in advance.

“GoPlus immediately launched an internal investigation. The investigation results show that this situation is not true. Because the GoPlus team weren’t informed in advance about the March 4th listing of GPS. Everything happened rapidly, and our team only learned about the listing when the public announcement was made, after which we immediately worked to cooperate with Binance to facilitate any additional requirements on our side.”

MyShell says it terminated its relationship with the newly banned market maker.

“All Binance accounts associated with the Market Maker have been suspended, and all remaining assets will be transferred to our new market makers. Furthermore, all stablecoins the Market Maker sells will be fully used to buy back SHELL within 90 days. To ensure full transparency, we will publish wallet addresses related to the buyback for the community to verify. Additionally, we are working closely with Binance to make this process public and transparent.”

MyShell’s token, SHELL, is down more than 28% in the past week.

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