In a report by EXAME magazine, we have:
"The cryptocurrency exchange Binance acknowledged last Sunday, the 9th, that one of its "market makers" conducted irregular operations that resulted in losses for its clients. The exchange announced the suspension of the agent and also intends to compensate all investors affected by the case.
In a statement released to the public, Binance said that the market maker had committed irregularities involving the manipulation of prices of two meme cryptocurrencies, GPS and SHELL. After identifying the manipulation, the agent was suspended from the platform.
"Market makers" are agents who operate in the cryptocurrency market to provide and ensure liquidity and volume for trading different digital assets. Exchanges usually offer rewards to encourage the activity, which is not illegal.
Binance also stated that it will confiscate any amount obtained by the market maker from the irregular operations. The amount will be used to compensate investors of the two memecoins, but more details about the plan will be disclosed only at a later date.
"Binance will take additional measures against any market makers authorized by the project who do not comply with or violate the principles and rules to better protect our users," emphasized the cryptocurrency exchange in the statement released to the public."
