Binance, the world's largest cryptocurrency exchange, launched an investigation into the Squid Game token to track funds associated with the epic 45,000% bomb and dump a few days ago.
The Binance Smart Chain-based SQUID gambling token is suspected of being an exit scam or carpet tug based on the exchange. Despite this, some extremely optimistic users are still buying the token in hopes of a resurrection, and the price has increased six-fold in the last 24 hours.
Binance is exploring options to help those who bought the token and lost in the accident. It is reportedly blacklisting developer-affiliated addresses and using blockchain analytics to identify bad actors. He hopes to recover the lost funds, although it seems like a relatively remote possibility.
Binance determined that the developers had used a coin mixer called Tornado Cash to obfuscate their transactions. "Our security team is tracking those funds," said a spokesman. Barrons before adding:
"These types of fraudulent projects have become all too common in the DeFi space as speculative crypto investors looking for the next 'lunar opportunity' rush to invest in projects without conducting due diligence."
Binance intends to turn over its findings to the appropriate law enforcement agencies.
On October 29, Cointelegraph reported that token holders were unable to sell after SQUID's price rose more than 45,000%. Industry watchers had raised red flags at the time saying it had all the signs of a scam, like closed social media accounts, anonymous developers, and a suspicious white paper. Major media outlets reported on the Squid Game token which ignited even more FOMO.
Multiple copies of the token and its social media channel emerged within days, and the developers posted on Telegram's 'Squid Game BSC' channel that they "don't want to continue running the project as we are depressed by scammers and overwhelmed." with stress ".
By November 1, Twitter had flagged his account as suspicious and the the token price collapsed by 99% eliminating gains of up to $ 2,861 in a drop to near zero.
Related: Game over! 'Squid Game' Inspired Crypto Scam Collapses As Price Falls From $ 2.8K To Zero
Binance-owned CoinMarketCap tracker now displays a warning on its page for SQUID:
โThere is growing evidence that this project has been difficult. Please do your own due diligence and be very careful. This project, while clearly inspired by the Netflix show of the same name, is NOT affiliated with the official IP. "
Surprisingly, people are still buying the tokens. At the time of writing, SQUID was up 600% in the last 24 hours to $ 0.038 according to CMC.
