Binance Removes Market Maker Over $38M Profit from MOVE Token Listing
Binance, the world’s largest cryptocurrency exchange by trading volume, announced that it had offboarded a market maker linked to Movement’s MOVE token due to its association with another market maker previously removed for “misconduct.”
According to Binance, the decision was made after the entity engaged in irregular market-making activities, failing to uphold its responsibilities. Market makers play a crucial role in ensuring liquidity by quoting both bid and ask prices, helping maintain smooth trading without significant price fluctuations.
However, Binance revealed that this particular market maker profited $38 million during MOVE’s listing but failed to fulfill its obligation to provide adequate liquidity. Instead of maintaining balanced order placements, it placed 66 million MOVE tokens for sale just a day after the listing while making only minimal buy orders—effectively engaging in one-sided market-making, a practice widely regarded as improper and potentially illegal.
As a result, Binance took action and removed the entity from its platform on March 18. Both Movement Labs and the Movement Foundation were informed of the market maker’s irregularities. Binance further confirmed that the entity’s access to the exchange has been revoked, and all proceeds have been frozen to compensate affected users. More details on user reimbursements will be provided later.
Binance reiterated its commitment to enforcing strict compliance measures, stating that any project-authorized market makers found violating platform rules will face further action to protect users.
This move follows an unrelated incident where Binance suspended a staff member after an internal investigation into alleged front-running trades in a previous role at BNB Chain.
