Based on the findings from the investigation on one of the market makers (the “Market Maker”) for GoPlus Security (GPS), Binance has identified the project MyShell (SHELL) using the same Market Maker.

Due to the Market Maker’s misconduct, for the purpose of best protecting Binance’s users, Binance has taken following steps:

• Offboarded and forbid any further market making activities by the Market Maker on Binance;
• Confiscated proceeds from the Market Maker for the purpose of compensating users for GPS and SHELL (Detailed compensation plan will be determined and communicated by respective projects at a later date).

All projects’ authorized market makers on Binance must comply with the principals and rules as follows:

• Place orders for both bid and ask;
• Ensure sufficient order size within the specified depth levels;
• Maintain a healthy and stable spread for market activity;
• Ensure orders remain for a certain amount of time, and prevent market disruption from high-frequency order placement and cancellations.

Binance warns that it will take action against any project-authorized market makers that do not comply with or breach such principles and rules.