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Business November 4, 2021 2 mins read

Binance Dedicates Investigators to Track Down the SQUID scammer

Business ı By Rochdi Rais

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Binance

Binance, one of the major cryptocurrency exchanges, said on Thursday it has dedicated a team of investigators to track down the SQUID cryptocurrency scammers.

SQUID token which is inspired by the Korean-language Netflix series “Squid Game” surged from $0.01 to almost $3,000 before plummeting to $0 by Monday. The crypto’s website and social media accounts went offline instantly after that, suggesting that a potential “rug pull” where creators ran away with the money.

The Binance investigators will be "deploying blockchain analytics to identify the bad actors", a spokesperson told Business Insider. Binance will also provide its findings to law enforcement in the relevant jurisdictions.

"Our security team has launched an investigation - as a gesture of goodwill," a Binance spokesperson told Insider in an emailed response.

SQUID creators flee with $3 million

At what seems like a scam, SQUID creators fled with over $3 million. Victims included a trader who invested his whole life savings of $28,000 in the cryptocurrency.

"The truth is, SQUID won't be the first or last DeFi scam," Binance CEO and co-founder Changpeng Zhao - known more widely as CZ - said in a blog Thursday.

CZ urged people to arm themselves with knowledge about crypto. He noted that over the past year, more first-time investors than ever had entered the market.

"We're entering a period of peak speculation-people are looking for the next get-rich-quick scheme, or 100X opportunity. The truth is, those 100X don't come along often. And when they do, they usually come with a ton of risk, sometimes so much so that the lines get blurred between investing and gambling," CZ said.

 

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Rochdi Rais

Rochdi Rais is the Head of Growth and financial and legal writer at USA Herald. He has been writing and editing financial, legal and U.S. news for years with over +4000 articles published during his career.

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