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November 29, 2022
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Binance investigates the scam behind the 99% dropped Squid Game token

According to the portal Barrons, a Binance intelligence team is currently auditing the Blockchain, collecting relevant data and information that will help authorities catch the criminals behind the Squid Game token scam.

The lucrative SQUID encryption was inspired by the South Korean “Squid Game” program and managed to raise prices in a matter of days.

However, the token’s popularity quickly declined as SQUID’s prices dropped to zero, and its developers soon decided to scrap their project and run away with investor money.

Binance Investigative Strategies

Binance is overtly exploring new options for tracking down scammers. The company’s spokesperson stated that they are “putting addresses on the list of deniers, affiliated with developers and deploying analytics on the Blockchain to identify scammers”

Exchange will also distribute information found to the authorities to assist them in the investigation. It should be noted that the play-to-earn SQUID token was built on the Binance Smart Chain, however, the exchange revealed that the protocol is an open source ecosystem and therefore the company has no oversight over the projects built on the network.

Binance’s spokesman also stated that these scam strategies have become quite common in the crypto industry and that they are working hard to find as many clues as possible to pinpoint the real culprits.

The platform too reported that the scammers used a cryptocurrency scrambling service called Tornado Cash to hide their identity. The developers of Tornado Money have yet to pronounce.

Binance has a promising track record when it comes to fighting crime in the cryptocurrency industry. Exchange had previously helped authorities reveal the identities of a criminal gang FANNYCAT, a group of hackers responsible for organizing frequent ransomware attacks and collecting payments in crypto.

Source: CryptoSlate

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