Source: Cointelegraph Original: "{title}"

The organization behind Movement Network has announced that it will use the $38 million in funds recovered from market makers to repurchase MOVE tokens over the next three months.

On March 24, the Movement Network Foundation stated that it had recovered approximately $38 million in assets from a market maker that was originally responsible for providing liquidity for buy and sell orders of the Movement (MOVE) token on Binance.

Binance delisted the market maker for "market misconduct," imposed sanctions on the market maker, froze its profits, and prohibited further market-making activities.

Market makers provide liquidity for cryptocurrency tokens to attract traders and stabilize prices. These entities are responsible for providing liquidity on buy and sell orders, ensuring the smooth operation of cryptocurrency exchanges.

According to Binance, the market maker sold 66 million MOVE tokens after the token was listed while providing "very few" buy orders. These transactions generated $38 million in USDT profits for the market maker.

Binance stated that it has frozen these profits and notified the Movement Network Foundation of the incident.

The foundation has stated that it has "cut all ties with the market maker" and has recovered the funds that were frozen due to the market maker's misconduct, which will be used for the repurchase plan:

"All cash profits recovered from the market maker will be used by the Movement Network Foundation to establish the Movement Strategic Reserve: a $38 million USDT repurchase plan to purchase MOVE tokens for long-term use and return USDT liquidity to the Movement ecosystem."

The organization also shared the wallet address for its "Movement Strategic Reserve," where purchased MOVE tokens will be regularly transferred.

This incident follows Binance's action against another affiliated market maker on the exchange. On March 9, Binance announced that it had delisted the market makers for the GoPlus Security and MyShell projects. The exchange stated that it had confiscated the profits from these projects and would develop a compensation plan for users.

In addition to the market maker, the exchange recently suspended an employee due to alleged insider trading. On March 25, Binance launched an investigation into a member of its Binance wallet team after receiving complaints that the employee engaged in front-running trading.

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