Market Maker Dropped by Binance Over Alleged $38M Gain on MOVE Token Listing.

Binance Cuts Ties with Market Maker Over $38M MOVE Token Windfall

Binance has removed a market maker involved in the trading of Movement’s MOVE token, citing irregular activities and ties to another previously offboarded entity accused of misconduct.

Market makers are essential in crypto trading, ensuring liquidity by placing both buy and sell orders to prevent drastic price swings. However, Binance disclosed that this particular market maker failed to uphold its role. Instead of maintaining balanced order books, the entity placed sell orders for 66 million MOVE tokens just one day after the listing while placing minimal buy orders—resulting in a $38 million profit.

This form of one-sided market-making is widely considered a market manipulation tactic, and Binance emphasized that it enforces strict rules to prevent such behavior.

The exchange confirmed that it offboarded the market maker on March 18 and informed Movement Labs and the Movement Foundation about the situation. The entity has been banned from the platform, and its funds have been frozen to compensate affected users, with further details on reimbursements to follow.

Binance reaffirmed its stance on maintaining market integrity, warning that any market makers violating its policies will face firm action.

Separately, in an unrelated case, Binance recently suspended an employee after an internal investigation into alleged front-running activities tied to a previous role at BNB Chain.