After stealing more than $3 million in a matter of seconds, the masterminds behind the Squid rug pull are probably living the high life. Binance, on the other hand, is doing everything it can to ensure that their party is short-lived.
Binance, the world’s largest cryptocurrency exchange platform, is on the lookout for the scammers. An intelligence team is auditing the blockchain and gathering information to give to authorities in order to apprehend the scammers.
Binance Demands Scammers Pay
A Binance spokesperson assured that these strategies had recently become very popular in the crypto ecosystem and that they were working to trace the funds and provide authorities with as many leads as possible in order to identify the perpetrators.
“(Binance) is blacklisting addresses associated with developers and using blockchain analytics to identify bad actors.”
According to the platform, the fraudsters used the cryptocurrency mixing service Tornado Cash to conceal their identities.
Tornado Cash is an Ethereum-based decentralized transaction anonymization service. To prevent funds from being traced and associated with a specific identity, users send tokens, and the platform conducts various internal transactions.
Tornado Cash’s developers have not responded on social media to Binance’s claims that their platform is being used by criminals. Similarly, Binance did not specify whether it was working with any specific agency but assured that the information would be passed on to the “appropriate jurisdiction.”
Binance has a track record of combating crime. It revealed in June 2021 that it assisted authorities in identifying and apprehending members of a criminal gang known as FANCYCAT — a hacking group responsible for ransomware attacks demanding cryptocurrency payments.
The Squid Game Token’s Rise and Fall
As previously reported by ULTCOIN365, $SQUID was the cryptocurrency of a project inspired by the Netflix show Squid Game.
According to the project’s whitepaper, participants would compete in a variety of games, with the winner receiving a one-of-a-kind but extremely lucrative cumulative prize.
People had to pay a registration fee to play, but the token appreciated so much (over 100,000 percent) that the combined entry fees were close to $500K at its peak.
However, just a few days after the project’s launch, reports surfaced that users were unable to redeem their proceeds or sell their tokens.
A message in the Telegram community would mark the token’s demise a few days later. Please bear with us and disregard the grammar:
“Squid Game Dev does not wish to continue running the project because we are depressed as a result of the scammers and are (sic) overwhelmed with stress.” We must remove all of Squid Game’s restrictions and transaction rules. Squid Game will progress to a new level of community autonomy.
Again, I apologize for any inconvenience this has caused you. Ignore anything strange that comes out of it. Thanks!”
After the smart contract administrator sold all of the tokens and vanished, the token dropped to nearly zero.