The leading cryptocurrency exchange has offboarded an unidentified market maker that failed to comply with the platform’s rules a few months ago.

According to Binance, the market maker associated with the interoperable application blockchain Movement dumped millions of the network’s native token, MOVE, within 24 hours of its listing on the crypto exchange on December 9. The massive sales earned the market maker approximately $38 million in profits in Tether (USDT).

Binance Offboards Market Maker

Binance revealed that the market maker had little buy-side support, so its profits were at the expense of users.

Notably, this unnamed entity is tied to another market maker that Binance has banned for misconduct. This one engaged in improper conduct after Binance listed GPS, the native asset of the decentralized security layer GoPlus Security, and SHELL, the native token of the artificial intelligence consumer project MyShell. Binance offboarded the market maker and confiscated its proceeds to compensate GPS and SHELL users.

After Binance discovered the 66 million MOVE dump, it similarly offboarded the market maker on March 18, forbidding the firm from any further activities on the exchange. The latest announcement is just to inform the crypto community of the situation. The crypto exchange has forbidden the entity from engaging in market-making activities on the platform.

Binance has also informed the Movement Labs and Movement Network Foundation, entities fostering development in the Movement ecosystem, about the incident. The crypto exchange will use frozen proceeds from the market maker’s misconduct to compensate MOVE users.

Movement Network Foundation Takes Action

In a blog post, the Movement Foundation disclosed that it was unaware of the incident with the market maker until Binance brought its attention to an investigation into the firm’s practices. The foundation said it has cut ties with the market maker, informed other exchanges, and recovered the funds with a plan to buy back MOVE on public markets.

The Movement Foundation will use the cash proceeds recovered from the market maker to establish the Movement Strategic Reserve, facilitating the $38 million USDT buyback program geared toward returning the USDT liquidity to the ecosystem.

“In our commitment to transparency and community, purchases of $MOVE using the 38M $USDT recovered from the market maker will occur on Binance over the next three months,” the foundation added.

Meanwhile, MOVE reacted to the news, jumping almost 6% in the past 24 hours, per data from CoinMarketCap.

The post Binance Cuts Ties with Market Maker That Gained $38M from MOVE Token Sales appeared first on CryptoPotato.

On March 24, eToro announced that it had submitted a registration statement on Form F-1 to the U.S. Securities and Exchange Commission (SEC) in preparation for an initial public offering (IPO) of its Class A common shares.

The trading platform, founded in 2007, plans to list its shares on the Nasdaq Global Select Market under the ticker symbol “ETOR.”

Details of eToro Nasdaq IPO Filing and Financial Performance

According to the filing, the IPO, which could take place as early as Q2 2025, is expected to value the Israel-based company at over $5 billion.

eToro’s previous attempt to go public in 2021 via a $10.4 billion SPAC merger fell through in 2022.

However, the company raised $250 million in a 2023 funding round, securing a valuation of $3.5 billion from investors including ION Group, SoftBank Vision Fund II, and Velvet Sea Ventures.

According to its filing, eToro reported a massive jump in revenue, generating $12.6 billion in 2024 compared to just $3.89 billion in 2023.

Net income also saw a steep rise from $15.3 million in 2023 to $192 million in 2024, highlighting the company’s rapid growth amid a bullish crypto market.

Despite the detailed financials, eToro has not yet disclosed the number of shares it plans to offer or the expected IPO price.

Those details will emerge in a future filing once the company finalizes its launch plans.

Goldman Sachs, Jefferies, UBS, and Citigroup are leading the IPO, and both the company and existing shareholders will sell shares as part of the offering.

eToro’s Heavy Reliance on Crypto Markets

The filing highlights that 96% of eToro’s revenue in 2024 came from cryptocurrency trading.

The market’s bullish performance last year, partly fueled by U.S. President Donald Trump’s pro-crypto policies, contributed to eToro’s surge in user demand.

However, eToro did not include any financial projections for 2025, leaving investors to assess whether the company’s crypto-driven momentum will persist.

Given the volatile nature of the crypto market, sustained revenue growth remains uncertain.

eToro Regulatory Challenges in the U.S Amid Crypto Offerings Expansion

eToro has encountered regulatory hurdles, particularly in the U.S.

In September 2024, eToro USA LLC agreed to pay a $1.5 million fine and restrict crypto offerings to U.S. customers as part of a settlement with the SEC.

The regulator alleged that eToro had operated as an unregistered broker and clearing agency since 2020.

As part of the settlement, eToro now only allows U.S. customers to trade Bitcoin (BTC), Bitcoin Cash (BCH), and Ethereum (ETH), assets that are widely considered non-securities under current U.S. regulations.

eToro has maintained its strong presence in the crypto space, offering over 70 digital assets on its platform since first introducing Bitcoin trading in 2013.

In April 2024, the company partnered with 21Shares, a leading issuer of crypto exchange-traded products (ETPs), to launch an AI and data-driven crypto portfolio for retail investors.

The portfolio adapts to market trends by analyzing investor sentiment and monthly flows into European crypto ETPs.

Frequently Asked Questions (FAQs)

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