Binance launches investigations into SQUID token scammers

The Squid game token turned out to the one of the major rug pulls in the crypto space this year. In a matter of minutes, the token, which received a lot of hype due to the popular “Squid Games show on Netflix, crashed from around $2800 to less than a cent.

The scammers behind this token disappeared with $3 million. Now, crypto exchange giant, Binance, has stated that it is investigating these scammers, and it is determined to bring them to justice.

Binance seeking justice

A spokesperson from Binance stated that rug pulls were becoming a common thing in the crypto space and that the exchange was working with the authorities to trace the funds and give authorities leads that would help locate those behind the rug pull.

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“Binance is blacklisting addresses affiliated with the developers and deploying blockchain analytics to identify the bad actors,” the spokesperson stated.

Binance stated that the perpetrators were using Tornado Cash to hide their identities. Tornado Cash is a decentralized service that offers transaction anonymity. The network runs on Ethereum, and people who want to anonymize transactions send tokens to the platform. The transactions are sent around to prevent them from being linked to a single person.

Binance stated that if it found any information on these perpetrators, it would hand the details over to the right jurisdiction.

SQUID token crash

The SWUID token was launched amid the hype of the Squid Game Netflix show. However, the token was not in any way related to Netflix or the show. The project behind the token had a whitepaper detailing a project where participants participated in games, and those who won would receive hefty prices.

The project received a lot of hype and saw major price gains. At some point, the token gained 2400% in 24 hours. However, after a few days, CoinMarketCap published a warning citing reports that people could not sell their tokens on PancakeSwap.

Days after the crash, the project developers posted a message on Telegram stating that it was no longer running the project. The token dropped to almost nothing after the announcement, while the smart contract administrator sold all the tokens and vanished.

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