Cryptocurrency exchange Binance has become interested in the recent SQUID token scam, based on the popular Korean TV series Squid Game.
Last week, the price of the SQUID game token unexpectedly soared by 70,000%, reaching $ 2,861, and on Monday it collapsed to zero. At the same time, liquidity was frozen, so investors could not sell their holdings of tokens. Apparently, the developers turned the classic pump scheme, and then sold their stocks of tokens and disappeared with the users’ money.
As a spokesman for Binance told Barron’s, the exchange plans to return the funds lost by investors and transfer the evidence found during the investigation to law enforcement agencies.
“These types of scams have become too popular in the decentralized finance space,” said a Binance spokesman.
The site froze and blacklisted addresses associated with the SQUID developers. In addition, Binance uses blockchain analytics tools to identify criminals. However, the chances of finding them are rather small.
Fraudsters were able to get at least $ 3 million. SQUID developers used a Tornado Cash mixer to launder funds and avoid prosecution. At the same time, in the Telegram messenger, the developers wrote that they were not involved in fraud:
“The Squid development team is reluctant to continue working on the project due to the depression and stress following this scam. We apologize for any inconvenience this may cause. ”
Interestingly, on the morning of November 4, the SQUID token rate increased five times and reached $ 0.1. Perhaps investors are hoping that the Binance investigation will bear fruit and the token’s price will rise significantly.
More recently, a similar scam happened, during which the developers of the AnubisDAO project sold tokens for $ 60 million, and then disappeared with investors’ money.
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