Binance Is Investigating Squid Game Token, Considers It a Scam

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Crypto trade Binance is investigating the SQUID token crash and considers it a rip-off, a firm spokesperson confirmed to CoinDesk.

  • Binance is exploring choices to assist these harmed, together with “blacklisting addresses affiliated with the developers and deploying blockchain analytics to identify the bad actors,” the spokesperson mentioned.
  • Binance may even present their findings to legislation enforcement officers within the acceptable jurisdiction.
  • The play-to-earn SQUID protocol is constructed on Binance Smart Chain (BSC), however Binance emphasised that BSC is an open-source ecosystem and so the corporate doesn’t have oversight over tasks constructed on the community.
  • “These types of scam projects have become all too common in the DeFi space as speculative crypto investors seeking the next ‘moon shot’ are quick to invest in projects without doing the appropriate due diligence,” the spokesperson mentioned.
  • As reported earlier this week by CoinDesk, the worth of the SQUID token has crashed to almost zero and its builders have mentioned they’ve left the venture.
  • Barron’s first reported on the investigation. The token’s builders seem like utilizing Tornado Cash to cowl their tracks, Binance advised Barron’s.

Read extra: Play-to-Earn Squid Token Rockets 35,000% in 3 Days; Some Users Unable to Sell It

UPDATE (Nov. 3, 21:39 UTC): Updated to incorporate affirmation and statements from Binance.