Leading crypto exchange Binance has initiated an investigation into the Squid Game token (SQUID) to track assets involved with a recent 45,000% pump and dump.
The exchange suspects SQUID, a Binance Smart Chain-based gaming token, of being an exit scam or rug pull. Desperate buyers of the token are still purchasing it, with the price doubling in only 24 hours.
Binance is looking at ways to help people who purchased the token and lost money. It is said to be blacklisting developer addresses and utilizing blockchain analytics to detect problematic actors. It seeks to recoup lost cash, although this looks unlikely.
The probe was initially reported on by Barron. According to Binance, the token’s creators seem to be utilizing Tornado Cash to hide their traces.
Binance aims to notify the relevant law enforcement authorities of its findings.
Reports on Friday revealed that token holders were unable to sell after the price of SQUID increased by more than 45,000 percent. At the time, industry experts raised warning flags, claiming that it had all the hallmarks of a fraud, including blocked social media accounts, anonymous developers, and a dubious white paper. Mainstream media sites covered the Squid Game token, causing even more FOMO.