TechFlow reported on March 9 that, according to an official announcement from Binance, during an investigation into a market maker for GoPlus Security (GPS), it was discovered that the same market maker was also responsible for market making activities for the MyShell (SHELL) project. The investigation revealed that this market maker engaged in market misconduct. As a result, Binance has delisted the entity and banned it from conducting any further market-making activities on the platform, while confiscating its related earnings. These confiscated funds will be used to compensate users of the GPS and SHELL projects. Specific compensation plans will be determined and announced separately by the GPS and SHELL project teams.
In the announcement, Binance reiterated its requirements for project-authorized market makers, including ensuring bid and ask orders are properly supported, maintaining sufficient order size and order book depth, and avoiding high-frequency order placement and cancellations that disrupt market stability. Binance stated it will take further actions against market makers violating these rules to protect user interests.
