The world’s largest cryptocurrency exchange, Binance, launched an investigation into the Squid gaming token (SQUID) to track funds associated with an epic dump of 45,000% a few days ago.

Based on the Binance Smart Chain, the SQUID game token is suspected of exit or carpet fraud, according to the stock exchange. Despite this, some very optimistic users are still buying the token in hopes of an improvement as the price has risen six times in the last 24 hours.

Binance is exploring options to help those who bought the token and lost it in the crash. It is said to blacklist addresses owned by developers and use blockchain analysis to identify intruders. She hopes to regain the lost money, although this seems relatively unlikely.

Binance determined that the developers used a coin mixer called Tornado Cash to hide their transactions. A Barrons spokesman said: “Our security team is currently tracking this money,” before adding:

“This type of fraudulent project is becoming very common in the DeFi area as crypto investors looking for the next ‘moon shot’ are rushing to invest in projects without due diligence.”
Binance intends to forward its findings to the relevant law enforcement authorities.

On Friday, the Cointelegraph reported that token holders were unable to sell them after the price of the octopus rose more than 45,000%. At the time, industry monitors raised red flags, saying it had all the hallmarks of a scam, such as closed social media accounts, anonymous developers and a suspicious white paper. Big media reported on Squid’s game code, which generated even more FOMO.

November 4 SQUID / USD chart. Source: CoinMarketCap
A number of copies of the token and its channel appeared on social networks within a few days, and the developers of the Telegram channel “Squid Game BSC” wrote that they “will not continue to work on the project because we are oppressed by scammers and have dared us with pressure “.

On Monday, Twitter had flagged his account as suspicious, and the price of the coin had collapsed by 99%, cutting profits from the fall of 2861 dollars to close to zero.

Topic: Game Over! Cryptocurrency scams inspired by Squid Game crash as price drops from $ 2.8k to zero

Binance-owned tracker CoinMarketCap now displays a warning for SQUID on its page:

“There is more and more evidence that this project is reliable. Please exercise due diligence and exercise extreme caution. Although this project is apparently inspired by the Netflix show of the same name, it does not belong to the official intellectual property. “

Source: CoinTelegraph