Binance has taken action against a market maker linked to GoPlus Security (GPS) and MyShell (SHELL) after identifying market irregularities. The cryptocurrency exchange has offboarded the market maker from its platform and confiscated its proceeds to compensate affected users.

In an official announcement, Binance stated that an internal investigation revealed misconduct by the market maker, which had been operating for both GPS and SHELL tokens. While specific details of the violations were not disclosed, Binance emphasized that these actions were taken to safeguard users and maintain market integrity.

As part of its response, Binance has permanently barred the entity in question from conducting market-making activities on its platform. The exchange has also seized funds obtained by the market maker, with a compensation plan to be determined and communicated by the respective projects at a later date.

Binance also reinforced its market-making principles, stating that authorized market makers must maintain balanced bid and ask orders, ensure sufficient order sizes within specified depth levels, sustain a healthy and stable market spread, and prevent excessive high-frequency order placements and cancellations that could disrupt trading. The exchange warned that any project-authorized market makers failing to comply with these rules would face further disciplinary actions.

Binance reiterated its commitment to promoting transparency and sustainable growth within the cryptocurrency ecosystem. As GPS/USDC saw a 7.64% decline to $0.0383, while SHELL/USDC rose 8.37% to $0.2952, market participants await further details on how affected users will be compensated.

Binance continues to emphasize strict adherence to market regulations, ensuring that market makers operate in a way that fosters fairness and stability for traders on its platform.