Binance Delists Market Makers GPS and SHELL for Misconduct, Stocks Plunge

Binance, one of the world's leading cryptocurrency exchanges, has taken decisive action against two market makers, GPS and SHELL, for misconduct. The exchange discovered that the same market maker was involved in market-making activities for both GoPlus Security (GPS) and MyShell (SHELL) projects. This dual involvement raised concerns about potential conflicts of interest and improper behavior, prompting Binance to conduct a thorough investigation.

As a result of the investigation, Binance has implemented several measures to protect its users. The market maker has been delisted and is prohibited from conducting any further market-making activities on the platform. Additionally, all related earnings from the market maker's activities have been seized and will be used to compensate users of the GPS and SHELL projects. The detailed compensation plans will be decided by the respective project teams and announced in due course.

In a previous announcement, Binance revealed that a certain GPS market maker had engaged in suspicious trading activities. Specifically, the market maker sold GPS tokens without making any corresponding purchases within a 21-hour period, resulting in the sale of 70 million GPS tokens and a profit of 5 million US dollars. This behavior was deemed inappropriate and harmful to the integrity of the market, leading to the current actions taken by Binance.

Binance's swift response to the misconduct demonstrates the exchange's commitment to maintaining a fair and transparent trading environment. By delisting the market makers and seizing their earnings, Binance aims to send a clear message to other market participants about the consequences of engaging in improper behavior. The exchange's actions are expected to enhance user trust and confidence in the platform, reinforcing its position as a leader in the cryptocurrency industry.