Movement Network to Buy Back Tokens with $38 Million Recovered from Rogue Market Maker

The Movement Network Foundation announced on March 24, 2025, that it had successfully recovered approximately $38 million in assets from a market maker accused of selling large quantities of MOVE tokens without providing adequate buy orders. These funds, originally frozen by Binance, will be used to establish a buyback program and support the Movement ecosystem's liquidity.

The Rogue Market Maker Incident

The incident began when Binance, one of the world’s leading cryptocurrency exchanges, flagged suspicious activity by a market maker providing liquidity for the Movement (MOVE) token. Market makers play a crucial role in maintaining liquidity by placing both buy and sell orders for tokens, helping to stabilize prices and attract traders. However, Binance detected irregularities in the market maker’s behavior, noting that while they sold 66 million MOVE tokens after the token’s listing, they placed very few buy orders in return.

As a result, Binance offboarded the market maker and froze its proceeds, preventing any further market-making activities. The exchange’s actions aimed to protect the integrity of the market and ensure that the Movement Network’s token price remained stable.

Movement Network’s Response and Buyback Program

In response to this situation, the Movement Network Foundation severed all ties with the rogue market maker. The Foundation confirmed that it had successfully recovered the $38 million in Tether (USDT) that had been earned by the market maker through its unfair trading activities.

To address the issue and restore confidence in the MOVE token, the Movement Network Foundation revealed plans to launch a buyback program. The funds recovered will be used to purchase MOVE tokens, which will be added to the newly established "Movement Strategic Reserve." The goal of this program is to help stabilize the token’s price and enhance the liquidity within the Movement ecosystem for long-term growth.

“All cash proceeds recovered from the Market Maker will be used by the Movement Network Foundation to establish the Movement Strategic Reserve: a 38M $USDT buyback program to purchase $MOVE for long-term use and to return the USDT liquidity to the Movement ecosystem,” the Foundation said in a statement.

The Foundation has also shared the wallet address for its Strategic Reserve, where the purchased MOVE tokens will be transferred periodically.

Binance’s Ongoing Investigations

This incident follows other actions taken by Binance against market makers who have been involved in market irregularities. On March 9, 2025, Binance announced that it had offboarded market makers from two projects, GoPlus Security and MyShell, due to suspicious activities. The exchange froze the proceeds of these market makers and outlined plans to compensate users who were affected by the irregularities.

Additionally, Binance has been proactive in addressing internal misconduct. On March 25, 2025, the exchange announced that it had launched an investigation into a staff member of its Binance Wallet team who had allegedly been involved in front-running trades. This is part of Binance’s ongoing efforts to maintain the integrity of its platform and protect its users from unfair trading practices.

Looking Ahead

With the buyback program now in place, the Movement Network Foundation is hopeful that it can help restore balance and confidence in the MOVE token’s market. As the recovery process continues, the community and investors are closely watching how the token’s price and liquidity evolve in the coming months.

For more information about Binance's latest actions and the ongoing investigations, you can visit Binance's official website or follow the Movement Network Foundation’s updates on its official channels.