Binance has released an official report detailing the actions taken against a market maker involved in irregular trading activities related to GoPlus Security (GPS) and MyShell (SHELL). Following an internal investigation, the crypto exchange identified misconduct by the market maker, who provided services for both projects.
Binance Cracks Down
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, which will be utilized to compensate affected users, with specific compensation plans to be outlined by the respective projects at a later date.
Binance emphasized that all approved market makers are required to adhere to strict guidelines. These include maintaining adequate order volumes, ensuring consistent bid-ask spreads, and refraining from manipulative practices such as high-frequency trading. The platform also cautioned that breaches of these rules would result in severe repercussions.
Animoca Brands, GSR Deny Ties to Market Manipulation Scandal
The uncertainty surrounding the market maker’s identity has sparked widespread rumors regarding potential involvement from various entities. However, some leading names in the digital asset industry have categorically denied any connection. Animoca Brands, a Hong Kong-based game software company and a significant player in the Web3 space, has clarified that it is not engaged in market-making for GPS and SHELL. Its statement read,
“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).”
Similarly, GSR, a prominent crypto market maker, addressed the situation in light of Binance’s actions, confirming that it is not the market maker involved in the irregularities identified by Binance. While GSR acknowledged its role as an investor and partner of GoPlus Security, it clarified that it does not provide market-making services for the project.
“We can confirm that we are not the market maker referenced in Binance’s statement regarding GoPlusSecurity 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.”
The post Binance Bans Market Maker for GPS and SHELL After Trading Irregularities appeared first on CryptoPotato.
