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Binance Issues Crucial Market Maker Alert
On March 25th, 2025, Binance responded to recent findings by notifying Movement Labs and Movement Foundation of the suspicious trading practices associated with their market maker. As a result, the project team has frozen the net profits earned by this entity, which amounted to an astonishing 38 million USDT.
The platform emphasized the importance of ethical market-making practices and issued a crucial alert to all registered market makers on its exchange. According to sources, Binance will create and distribute a comprehensive compensation plan for users affected by the erratic activities.
As a consequence, the identified market maker has been removed from the platform and prohibited from engaging in any further market-making activities. The exchange has reiterated the significance of adhering to these principles:
* Maintaining both buy and sell orders to ensure liquidity
* Ensuring sufficient order sizes within specified depth levels
* Keeping a healthy and stable bid-ask spread
* Preventing market disruption caused by high-frequency order placements and cancellations
Market makers who fail to comply with these standards will face strict enforcement actions, including removal from the platform. This move aims to protect the integrity of Binance’s trading environment and maintain trust among its users.
As a result, market participants should be aware that non-compliance with these guidelines will no longer be tolerated on the exchange.
Source: https://u.today/binance-issues-urgent-market-maker-alert
