SECURITY

Binance is investigating the exit scam involving Squid Coin, which surged over 2200% in a single day.

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Binance is investigating the exit scam involving Squid Coin, which surged over 2200% in a single day.

The BSC DeFi protocol Squid Game (SQUID), named after the popular South Korean TV series but unrelated to it, experienced a rug pull in early November, where its exaggerated price surge plummeted to zero instantly, attracting media and public attention. In Taiwan, legislators even raised questions about cryptocurrency taxation issues related to "Squid Game" coin.

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Named after the popular Korean series "Squid Game" but unrelated, the BSC DeFi protocol Squid Game SQUID experienced a Rug Pull at the beginning of November, meaning it ran off with funds. Its exaggerated surge quickly plummeted to zero, attracting media and public attention. In Taiwan, even legislators raised questions about "Squid Game Coin" and cryptocurrency tax issues.

Despite Binance's statement that they will investigate, the Squid Game website, Medium, and Twitter accounts have been shut down, yet the token SQUID surged over 2200% today.

Binance told Barron's in an interview that:

  • They are considering remedies such as blacklisting developer addresses and identifying wrongdoers through on-chain analysis.
  • Providing relevant evidence to law enforcement.
  • The play-to-earn Squid Game protocol is built on BSC, an open-source ecosystem, and Binance does not have jurisdiction over the network's projects.
  • A spokesperson admitted that such scam projects are common in DeFi because speculators often seek quick profits without considering security.
  • It appears that the developers of Squid Game are using the privacy protocol Tornado Cash to conceal fund flows.

Currently, CoinMarketCap also warns users on the SQUID page:

"We have received several reports indicating that the project's website and community are no longer operational, and users are unable to sell the token on PancakeSwap. There is more evidence showing that this project has exit scammed. Please conduct thorough due diligence and exercise extreme caution. This project is clearly unrelated to the Netflix series and is only using the same name."