Binance has banned a market maker and confiscated its earnings after an investigation indicated that the entity had engaged in improper conduct.

The world’s top cryptocurrency exchange did not disclose the identity of the market maker, but pointed out that it was a liquidity provider for the decentralized security layer GoPlus Security (GPS) and the AI consumer project MyShell (SHELL).

Binance delisted the market maker and confiscated its earnings, "with the aim of compensating users of GPS and SHELL."

The native token of GoPlus Security, GPS, plummeted last week after being listed on Binance. The asset has dropped more than 71% in the past 7 days.

GoPlus Security has denied rumors that "GoPlus team members or community moderators" leaked information about the Binance listing.

"GoPlus immediately launched an internal investigation. The findings showed that this was not the case. The GoPlus team was not informed in advance that GPS would be listed on March 4. Everything happened very quickly, and our team only learned about the listing when it was publicly announced; afterwards, we immediately collaborated with Binance to facilitate any additional requests on our side.

MyShell stated that it has terminated its relationship with the newly banned market maker.

"All Binance accounts related to the market maker have been suspended, and all remaining assets will be transferred to our new market maker. Additionally, all stablecoins sold by the market maker will be fully used to repurchase SHELL within 90 days. To ensure complete transparency, we will publish the wallet addresses related to the repurchase for community verification. Furthermore, we are working closely with Binance to make this process public and transparent.

MyShell's token SHELL has declined by more than 28% in the past week. #币安Alpha上新