Binance Cuts Ties with Market Maker Over MOVE Token Manipulation
Binance has removed a market maker linked to the MOVE token after uncovering irregular trading activity. The exchange stated that the entity had connections to another market maker previously banned from the platform for misconduct.
Market makers are essential for maintaining liquidity in trading markets, ensuring that buy and sell orders are balanced to prevent extreme price swings. However, Binance disclosed that this particular market maker engaged in unfair trading practices by offloading 66 million MOVE tokens in sell orders just a day after the listing while placing only minimal buy orders. This led to a $38 million profit, violating Binance’s market-making policies.
The exchange confirmed that the market maker was offboarded on March 18, and both Movement Labs and the Movement Foundation were informed of the trading irregularities. Binance has since frozen the entity’s proceeds, with plans to compensate affected users. Further details on the reimbursement process will be provided at a later date.
Binance reiterated that it enforces strict guidelines to ensure fair trading and warned that any market makers failing to comply will face immediate action.
Meanwhile, in an unrelated incident, Binance recently suspended an employee following an internal investigation into alleged front-running trades from a previous role at BNB Chain.
