Binance released an official report detailing actions taken against a market maker involved in irregular trading activities for GoPlus Security (GPS) and MyShell (SHELL).

Following an internal investigation, the crypto exchange identified misconduct by the market maker, who serviced both projects.

Binance Cracks Down

In response, Binance has offboarded the market maker and permanently barred them from conducting any further market-making activities on the platform.

Additionally, the platform has confiscated the market makers proceeds, which will be used to compensate impacted users, with specific compensation plans to be outlined by the respective projects at a later date.

Binance emphasized that all approved market makers are required to follow strict guidelines. This includes upholding adequate order volumes, maintaining consistent bid-ask spreads, as well as refraining from manipulative practices such as high-frequency trading.

The platform also cautioned that breaches of these rules would result in serious consequences.

Animoca Brands, GSR Deny Ties to Market Manipulation Scandal

Uncertainty surrounding the market makers identity has sparked widespread rumors about which entity could be involved. Despite this, some leading names in the digital asset industry have outright rejected any connection. Animoca Brands, the Hong Kong-based game software company and a key player in the Web3 space, clearly confirmed they are not responsible for market-making for GPS and SHELL.

Its statement regarding the same read,

In response to queries, Animoca Brands wishes to clarify it is not involved in market making activities for GoPlus Security ($GPS) and/or MyShell ($SHELL).

Similarly, GSR, a prominent crypto market maker, addressed the issue in light of Binances actions and made clear that it is not the market maker involved in the irregularities identified by Binance. While acknowledging its role as an investor and partner of GoPlus Security, GSR clarified that it does not provide market-making services for the project.

We can confirm that we are not the market maker referenced in Binance’s statement regarding GoPlusSecurity and remain committed to upholding the highest standards of integrity and transparency with our clients. As an investor and partner of the GoPlus team, we are in close contact with them and continue to offer our full support.