Binance Cracks Down on Malicious Market Makers: GPS and SHELL Tokens Hit by $5 Million Scandal
Global cryptocurrency giant Binance has dropped a bombshell by permanently banning a market maker suspected of engaging in improper trading with GoPlus Security (GPS) and MyShell (SHELL) tokens. The exchange did not stop there; it confiscated illegal profits and vowed to compensate affected users, causing a stir in the cryptocurrency community. This severe crackdown, announced on March 9, 2025, unveiled the dark side of market manipulation and Binance's iron-fisted response.
The rogue market makers' misconduct resulted in an astonishing $5 million loss for the market. On-chain analyst "Aunt Ai" revealed that there were 300 million GPS tokens lurking outside of Binance, which were used as tools by market makers. Within 21 hours of GPS's listing, the institution dumped 70 million tokens, selling without buy orders, and profiting $5 million—leading to a liquidity collapse and a price crash. Binance also discovered violations such as high-frequency ordering and canceling orders, further undermining market stability. What were the consequences? GPS plummeted over 11%, while SHELL recovered a 6.5% gain after dropping to $0.26.
This is not just a minor penalty, but a comprehensive cleansing. Binance confiscated profits through its exchange and is developing a compensation plan for GPS and SHELL holders, with details to be announced soon. Meanwhile, the exchange is tightening controls and launching a new listing and delisting system, allowing users with 0.01 BNB to vote on the fate of tokens—although Binance retains final decision-making authority. This story serves as a stern warning: play with conspiracies, and you will pay the price. Will this restore trust or trigger more chaos? The crypto world is watching.
Follow + Watch the Live Stream by Zuye.
Global cryptocurrency giant Binance has dropped a bombshell by permanently banning a market maker suspected of engaging in improper trading with GoPlus Security (GPS) and MyShell (SHELL) tokens. The exchange did not stop there; it confiscated illegal profits and vowed to compensate affected users, causing a stir in the cryptocurrency community. This severe crackdown, announced on March 9, 2025, unveiled the dark side of market manipulation and Binance's iron-fisted response.
The rogue market makers' misconduct resulted in an astonishing $5 million loss for the market. On-chain analyst "Aunt Ai" revealed that there were 300 million GPS tokens lurking outside of Binance, which were used as tools by market makers. Within 21 hours of GPS's listing, the institution dumped 70 million tokens, selling without buy orders, and profiting $5 million—leading to a liquidity collapse and a price crash. Binance also discovered violations such as high-frequency ordering and canceling orders, further undermining market stability. What were the consequences? GPS plummeted over 11%, while SHELL recovered a 6.5% gain after dropping to $0.26.
This is not just a minor penalty, but a comprehensive cleansing. Binance confiscated profits through its exchange and is developing a compensation plan for GPS and SHELL holders, with details to be announced soon. Meanwhile, the exchange is tightening controls and launching a new listing and delisting system, allowing users with 0.01 BNB to vote on the fate of tokens—although Binance retains final decision-making authority. This story serves as a stern warning: play with conspiracies, and you will pay the price. Will this restore trust or trigger more chaos? The crypto world is watching.
Follow + Watch the Live Stream by Zuye.