Binance Investigates Squid Game Scammers After Taking $3M From Users

Binance investigates Squid Game scammers who disappeared after stealing $3 million from investors as we reported earlier in our cryptocurrency news.

The masterminds behind the Squid Token rug pull managed to drain $3 million from investors and are probably enjoying themselves somewhere across the world. But Binance pledged to do anything it can to make sure it brings the scammers to justice. Binance investigates the Squid Game scammers and according to an intelligence team of the platform, it will start auditing the blockchain and gather information to hand over to authorities and help to catch the bad guys.

A Binance spokesperson assured that these strategies became quite popular in the crypto space and that they were working to trace the funds and give some help to the authorities with leads that can identify the scammers:

“(Binance) is blacklisting addresses affiliated with the developers and deploying blockchain analytics to identify the bad actors.”

The platform explained that the fraudsters used a crypto mixing service Tornado cash to hide their identities. Tornado Cash is a decentralized transaction anonymization service that runs on Ethereum and all users can send tokens and then wait on the platform to conduct various internal transactions to prevent funds from being traced and connected to a particular identity. The developers didn’t speak out on the social media portals about the Binance accusations that their platform is being used by criminals and similarly Binance didn’t comment that it was working with other agencies but assured that it will hand over the information to the right jurisdiction.

Binance has a history of fighting crime as back in June it revealed that it helped authorities in identifying and catching the members of a criminal gang known as FANCYCAT which is a hacking group that was responsible for ransomware attacks that demanded crypto payments. As reported recently, SQUID was the crypto of a project that was inspired by Netflix’s Show Squid Game and according to the project’s whitepaper, participants are competing in a few games and whoever wins, will walk away with a huge prize. In order to play, people had to pay a registration fee but the token increased so much that the combined entry fees reached $500K.

A few days later, however, the community reported that users were unable to redeem their prize or sell their tokens:

“Squid Game Dev does not want to continue running the project as we are depressed from the scammers and is (sic) overwhelmed with stress. We have to remove all the restrictions and the transaction rules of Squid Game. Squid Game will enter a new stage of community autonomy. Sorry again for any inconvenience been made for you. If any strange starts coming out of it, ignore it. Thanks!”