Binance Delists Market Maker Over 38 Million USDT Profit From MOVE Token Manipulation

Cryptocurrency exchange Binance has taken action against a market maker linked to the Movement (MOVE) project due to misconduct. The exchange has frozen the profits of the market maker and plans to redistribute the funds to compensate affected users. The market maker in question is connected to another firm that was previously removed from the platform for similar violations. This firm had provided services for projects such as GoPlus Security (GPS) and MyShell (SHELL).

Market makers play a crucial role in financial markets by facilitating the buying and selling of assets, thereby providing liquidity. Binance's regulations for market makers include maintaining large order sizes, ensuring stable bid-ask spreads, and avoiding market manipulation through high-frequency trading activities. The MOVE market maker violated these regulations by selling approximately 66 million MOVE tokens with minimal buy orders one day after the token's launch, resulting in a final profit of 38 million USDT. As a result, Binance delisted the firm on March 18, 2025.

Binance has not disclosed the name of the penalized market maker, but some users have speculated that it could be Web3port. The Movement Network Foundation and Movement Labs stated that they were unaware of the market maker's misconduct and chose the firm as a partner due to its prior support for other projects within the Movement ecosystem. However, they did not clarify whether they would terminate their relationship with the market maker in the future. Instead, they announced plans to use the recovered funds for a MOVE token buyback program. All cash proceeds recovered from the market maker will be used by the Movement Network Foundation to establish the Movement Strategic Reserve, a 38 million USDT buyback program to purchase MOVE tokens for long-term use and to return USDT liquidity to the Movement ecosystem.

Additionally, concerns have been raised about two other market makers, Flowdesk and GSR Markets, due to their unusual activities. Flowdesk reportedly received 1.66 million MOVE tokens from the project team and deposited them into exchanges such as Coinbase, OKX, and KuCoin. GSR Markets received 70 million MOVE tokens and transferred them to various exchanges. While there is no direct evidence of violations, their involvement in the MOVE project has sparked community concerns.

Despite the controversy, the MOVE token's price increased nearly 7% in the past 24 hours, reaching $0.4597. This incident highlights the importance of regulatory compliance and transparency in the cryptocurrency market. Binance's actions demonstrate its commitment to maintaining the integrity of its platform and protecting its users from market manipulation and other forms of misconduct. The MOVE project's response to the situation, including the planned buyback program, shows its dedication to addressing the issue and restoring confidence in the ecosystem. The community's reaction to the events underscores the need for vigilance and accountability in the rapidly evolving world of digital assets.