Binance Suspends Two Market Makers After Violations
Date: 2025-03-26 Author: Henry Casey Categories: BUSINESS
Binance has suspended another market maker involved in trading the Movement token (MOVE) after it was discovered that its actions caused damage to investors. From December 10 to March 18, this market participant, whose name was not disclosed, sold 66 million tokens, receiving a profit of $38 million. All profits were subsequently frozen, and the Movement Network Foundation announced that it was severing all ties with this organization and announced a token buyback program for the same amount over three months.
Since MOVE appeared on Binance on December 10, its price fluctuated between $0.62 and $1.22, reaching a maximum of $1.41 the day after the listing. However, since January, the price began to decline, and by the beginning of March it reached $0.37. It is noteworthy that it was during this period, on March 5, that the crypto company World Liberty Financial (WLF), which has ties to the Donald Trump family, purchased 3.42 million MOVE tokens worth $1.5 million at a price of $0.438 per token.
On March 25, the token is trading at around $0.45. Interestingly, immediately after Binance announced the blocking of the violator, the MOVE rate briefly increased by 10%, reaching $0.477.
Binance representatives emphasized that they will continue to suppress the actions of any market makers who violate the established rules in order to ensure the protection of platform users. This is the second case of blocking a market maker in March. Previously, the exchange suspended the activities of another organization that was engaged in trading GoPlus Security (GPS) and MyShell (SHELL) tokens. The proceeds from the misconduct were seized and used to compensate the victims.
According to analyst Kuai Dong, quoted by former Binance CEO Changpeng Zhao, both incidents are related to Spark Digital Capital, a venture capital firm founded by Mei Liu.
After being listed on Binance, GPS and SHELL tokens have seen a sharp decline in value, down 60% and 77%, respectively, as of March 25. This reflects a broader trend: Of the 25 new tokens listed on Binance, only two (NEIRO and JUP) have shown growth, according to Dune data. The rest have seen a decline in value of more than 90% since the start of trading.
