Binance identified a market maker for Movement who dumped millions of MOVE tokens shortly after listing.
The market maker’s actions caused severe profit freezing for the project and raised serious concerns about fair trading practices.
Binance Freezes Profits Worth 38M USDT of Market Maker
Binance stated that the actor was linked to a previously offboarded market maker for GPS and SHELL due to misconduct.
The company explained that the market maker sold around 66 million MOVE tokens on December 10, 2024, with little to no buy orders. The market maker eventually made a net profit of 38 million USDT before being offboarded on March 18, 2025.
Actions Taken by Binance
Binance has taken strict steps to protect its customers following the market maker’s misconduct. The exchange informed the Movement Labs and Movement Foundation teams about the irregular trading behaviors immediately.
Binance froze the proceeds from the market maker to compensate affected users in due course. The company offboarded the market maker and banned all further market-making activities on its platform.
Binance reiterated that authorized market makers must maintain a balanced spread and follow order size and timing rules. The firm emphasized its commitment to ensuring market integrity and transparent operations for all users.
Also Read: Nigeria Confirms Openness To Cryptocurrency Companies Amid $80B Binance Lawsuit
Response from Movement Network Foundation
Movement Network Foundation confirmed that Binance initiated an investigation into the market maker’s actions on March 11. The foundation stated that they had no prior knowledge of the improper activities and severed all ties with the market maker promptly.
They informed other crypto exchanges about the investigation and worked closely with Binance to recover the funds. The recovered funds will be used to buy back MOVE tokens in the public markets.
The foundation also terminated all ecosystem partnerships with the market maker following the incident. Their prompt response demonstrates their commitment to protecting the Movement ecosystem from unethical practices.
Wider Market Impact and Related Developments
This action is not the first instance of Binance cracking down on unethical market making. Binance previously banned a market maker connected to MyShell and GoPlus Security after discovering irregular trading trends.
Victor Ji, co-founder of Manta Network, recently criticized market makers harshly, calling them “blood-sucking termites” who harm the crypto industry.
Binance’s decision reinforces its dedication to protecting its users and maintaining high market standards.
The exchange’s consistent enforcement of its rules provides reassurance to customers and market participants. Additionally, Binance recently suspended an employee for using non-public information for personal profit, further illustrating the company’s strict policy enforcement.
This shows that Binance continues to stand firm with its customers by taking decisive action against unethical market practices.
Also Read: Neiro Cuts Ties With Gotbit, Seeks New Market Makers