Binance Bans Market Maker, Seizes Profits from GPS, SHELL

Binance, a leading cryptocurrency exchange, has taken decisive action against a market maker involved with GoPlus Security (GPS) and MyShell (SHELL). The exchange has banned the market maker from further activities on its platform and seized all profits generated from their operations. This move comes after an investigation uncovered misconduct by the market maker, leading to the immediate termination of their activities on Binance.

In an official statement released on March 9, Binance disclosed that its investigation had revealed violations of the exchange's principles by the market maker. These principles include maintaining sufficient order size, ensuring a stable bid-ask spread, and avoiding market manipulation through high-frequency trading. Binance has confiscated the proceeds to compensate affected users, with the respective projects determining the details of the compensation plan.

The identity of the market maker remains unknown, sparking widespread speculation within the cryptocurrency community. Several major industry players have explicitly denied any involvement. Animoca Brands, a well-known investor in blockchain projects, categorically denied being the market maker for GPS and SHELL. Similarly, GSR, a leading crypto market-making firm, issued a statement distancing itself from the controversy. GSR confirmed that while it is an investor and partner of GoPlus, it does not engage in market-making activities for the project.

Industry insider AB Kuai Dong has suggested a potential link to May Liu, also known as Piaopiao, and her past ventures in crypto market making. According to Kuai Dong, Liu was the founder of Spark Digital Capital in Shanghai, a firm allegedly engaged in market outsourcing under the guise of venture capital (VC). As VC standards tightened in 2021-2022, Liu reportedly transitioned to incubating Web3 projects through Web3Port. She also ran a market-making firm called Whisper, which allegedly provided liquidity services and facilitated project listings on the Binance exchange.

Kuai Dong's claims, while unverified, suggest a broader trend of market-making firms operating under multiple guises within the crypto ecosystem. Another layer of intrigue comes from the overlap in common VC investors between GPS and SHELL. This has fueled speculation about potential behind-the-scenes connections between the projects and their market maker.

As investigations continue, the key question remains: Who is the market maker behind GPS and SHELL? The answer may have broader implications for transparency and regulatory