Binance Drops Market Maker Over MOVE Token Trading Violations

Binance has removed a market maker associated with the MOVE token after discovering irregular trading behavior, the exchange announced. The decision follows an internal review that linked the entity to another market maker previously offboarded for misconduct.

Market makers play a critical role in maintaining liquidity by ensuring there are sufficient buy and sell orders to keep trading smooth and stable. However, Binance revealed that this particular market maker engaged in one-sided trading, placing large sell orders for 66 million MOVE tokens just a day after listing while offering very few buy orders. This activity resulted in a $38 million profit and violated Binance’s market-making principles.

The exchange emphasized that such behavior is considered market manipulation and is strictly prohibited. As a result, the entity was offboarded on March 18, and both Movement Labs and the Movement Foundation were informed of the irregularities. Additionally, Binance has frozen the market maker’s funds to compensate affected users, with more details on the reimbursement process to be provided later.

Binance reiterated its zero-tolerance policy for market manipulation, stating that any market makers found violating its guidelines will face strict enforcement actions.

This move comes amid an unrelated incident in which Binance suspended an employee following an internal investigation into alleged front-running of trades tied to a previous role at BNB Chain.