GPS & SHELL Controversy: What Binance’s Investigation Revealed

Binance, one of the leading cryptocurrency exchanges, has recently banned a market maker associated with GoPlus Security (GPS) and MyShell (SHELL) from operating on its platform. The exchange also seized all the profits made by this market maker. This move has sparked considerable interest and speculation about the identity of the market maker and its implications for the cryptocurrency community.

Binance’s Investigation and Ban

On March 9, 2025, Binance announced that it had uncovered misconduct involving a market maker tied to the GPS and SHELL tokens. The investigation led to the immediate shutdown of the market maker operations on the platform. Binance also decided to freeze all the profits gained by this market maker to compensate the affected clients.

Binance added that market makers ought to be bound by strict standards, such as having a suitable order size, maintaining a stable bid-ask spread, and avoiding manipulative trading practices such as high-frequency trading.

The exchange warned that any market makers who violate these principles will face serious consequences. Binance’s action highlights the exchange’s commitment to protecting its users from unfair market practices.

Speculation Around the Market Maker’s Identity

While Binance has taken decisive action against the market maker, the identity of this entity remains unclear. This has led to widespread speculation within the cryptocurrency industry. Some major players in the space have publicly denied being involved in the market-making activities for GPS and SHELL.

For example, Animoca Brands, a major blockchain project investor, refuted through a social media update that it was engaged in GPS or SHELL market-making. Likewise, GSR, a leading crypto market-making company, distanced itself from the scandal due to its commitment to honor and integrity.

Alleged Connections to May Liu and Whisper

As the mystery surrounding the market maker deepens, industry insider AB Kuai Dong has suggested a potential connection to May Liu, also known as Piaopiao. Liu is said to have been the founder of Spark Digital Capital, a market-making firm that allegedly operated under the guise of a venture capital (VC) firm. Over time, Liu is believed to have transitioned to running Web3Port, an incubator for Web3 projects, and also operated a market-making firm called Whisper.

Kuai Dong’s claims suggest that Whisper provided liquidity services and helped projects get listed on Binance. This has raised questions about the involvement of Whisper in market-making for GPS and SHELL, though these claims remain unverified.

Common VC Investors and Industry Connections

Another curious aspect of the case is the shared investment in GPS and SHELL by several high-profile venture capital firms. Cryptorank data show that YZi Labs (formerly Binance Labs), OKX Ventures, and HashKey Capital are investors in both projects. The shared investment has served to drive further speculation about possible behind-the-scenes connections between the projects and the implicated market maker.

As the market maker probe continues, the crypto community is left with a burning question: Who is behind GPS and SHELL’s market-making activities? The answer to this question could have profound implications for transparency, trust, and regulatory compliance in the crypto community.