Movement Network to Repurchase MOVE Tokens Using $38M Recovered from Rogue Market Maker
The Movement Network Foundation announced plans to use $38 million recovered from a rogue market maker to repurchase MOVE tokens over the next three months. The funds were reclaimed after Binance identified and froze assets due to market irregularities.
Market Maker Sanctioned by Binance
On March 24, the Movement Network Foundation confirmed it had recovered approximately $38 million in assets from a market maker previously responsible for providing liquidity for the MOVE token on Binance. Binance had offboarded the market maker after detecting suspicious trading activities, freezing the proceeds and prohibiting further market-making operations.
Market makers typically provide liquidity by placing both buy and sell orders, stabilizing token prices and facilitating smooth trading. However, Binance reported that this particular market maker sold around 66 million MOVE tokens shortly after listing, while placing minimal buy orders. These actions netted the market maker $38 million in Tether (USDT).
Movement Network Establishes Strategic Reserve
The Movement Network Foundation stated it has severed all ties with the rogue market maker and will use the recovered funds to establish the “Movement Strategic Reserve.” This reserve will fund a $38 million USDT buyback program aimed at repurchasing MOVE tokens for long-term ecosystem support and liquidity restoration.
The foundation provided a wallet address for transparency, where repurchased MOVE tokens will be periodically transferred.
Binance Continues Investigations into Market Irregularities
This incident is part of a broader effort by Binance to address market irregularities. Earlier in March, Binance offboarded market makers associated with GoPlus Security and MyShell, confiscating proceeds and promising compensation plans for affected users. Additionally, Binance recently suspended a staff member amid allegations of insider trading, highlighting the exchange’s ongoing commitment to market integrity.
Quick Summary
- Movement Network Foundation recovered $38 million from a rogue market maker.
- Funds will be used to repurchase MOVE tokens over three months.
- Binance identified and froze the market maker’s assets due to irregular trading.
- Movement Network established a strategic reserve for long-term ecosystem support.
- Binance continues to investigate and address market irregularities.
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