Binance, a cryptocurrency exchange, will now look into the latest scam involving the Squid crypto token, which took money from investors in an exit scam. The exchange has also stated that it will ban accounts associated with the scam from its network.
A cryptocurrency based on the famous Netflix series Squid Game has caught the curiosity of crypto investors, reaching to a high of $2,861 within a week of its launch. The currency quickly fell to about $0 as the cryptocurrency’s inventors cashed out the tokens, leaving the project with no liquidity for further trade. It is estimated that the developers made $3.38 million, or around Rs 25.3 crore, from the project.
Binance has finally taken the steps to fight the scam. In a recent announcement, the exchange stated that it will examine the Squid token crash. It made it absolutely clear that it considers it a scam and that Binance will now investigate possibilities “to help those harmed” in the crash.
To that end, the company will block any withdrawals from Binance accounts found to be involved to the scam. It says in a statement to CoinDesk that it would use blockchain analytics “to identify the bad actors” and will blacklist the addresses associated with them. More significantly, Binance will inform the proper law enforcement agency of all information acquired during the investigation.