TL;DR Breakdown
- Binance wants to track the developers of the Squid Game token.
- The token reached an all time high of over $2,000 before it crashed.
- Binance continues to work with regulators to catch criminals.
Centralized exchange, Binance has announced that it is trying to track the developers behind the scam token, Squid Game. According to a post by Business Insider, the crypto exchange wants to capture the developers who carted away nothing less than $2 million using the token.
A spokesperson of the crypto exchange recently confirmed that they are pulling all works regarding analytics to identify the malicious actors. In the email forwarded to Business Insider, the exchange, as a sign of good faith, says its team is working overtime to bring the perpetrators to book.
Squid Game reached over $2,000 before its website disappeared
Binance CEO Changpeng Zhao recently gave his opinion on the issue in a blog post published by the firm. He mentioned that he does his best to remind users that they should be aware of the risks associated with the decentralized finance space. This is because these malicious acts are becoming rampant as the sector continues to grow rapidly. He also mentioned that he hates to hear of either a scam or hack involving people or entities in the crypto sector.
Squid Game made its debut on Pancakeswap and DODO, two of the biggest decentralized exchanges in the DeFi sector. The Binance Smart Chain-backed token climbed to an all-time high of more than $2,000 before its website disappeared. Squid Game launched as a play-to-earn game, which means users could accumulate as much as possible of the token provided they play a list of games.
Binance continues to work with regulators to catch criminals
Traders who were vigilant enough could catch the red flags that the platform portrayed from the beginning. For instance, the creators of Squid Game claimed that Tesla CEO Elon Musk endorsed the token coupled with other visible spelling errors on the website. The most alarming red flag was that players could buy the Squid Game token but could not sell them. The developers claimed on the 1st of November that the telegram channel was shut down due to scammers’ activities, which has stressed the system. Not long after, they removed rules restricting transactions.
This is not the first time Binance will be making strides to unravel criminals behind a scam, as it teamed up with a regulator last year to expose a crime gang worth $500 million. Binance reiterated that its partnership with regulators and enforcements would further help them unravel criminals across the crypto sector.
Asides from that, Binance has been on the watch of regulatory bodies since the beginning of this year. Regulators across Japan and Netherlands have issued strict warnings to users about trading on the crypto exchange. Other countries presently having issues with Binance regarding regulation includes the United Kingdom, Malaysia, Italy, and the Cayman Islands.
