Binance Officially Investigates Squid Game Token After Rugpull

Binace is hunting down the perpetrators of the Squid Game rugpaull as Changpeng Zhao himself takes a personal interest in the case.

By
Robert D. Knight
on
November 7, 2021
Category:
BSC News

The Hunt Begins

Binance is seeking out the Squid Game scammers, using chain analysis software to tip off relevant law enforcement agencies. On November 2nd BSC News reported that Squid Game had perpetrated a rugpull. Squid Game left users with a final message in which their development team sought to justify the theft by making the excuse, “we are depressed”.

With the scammers having reportedly found no joy in the robbery of their users, Binance now seeks to amplify the misery. Binance CEO Changpeng Zhao has taken a personal interest in the case, and took to the Binance blog to personally address the matter. In the post dated November 4th, CZ identified the three steps which Binance will take. These are:

  • Working to identify and blacklist address affiliated with the developers
  • Deploying blockchain analytics to identify the bad actors
  • Providing our findings to law enforcement in the appropriate jurisdiction(s)

Even with Binance on the case there is of course no guarantee that the perpetrators will be found. Squid Game victims hoping for a succesful resolution may find hope in the case of StableMagnet, in which a community-led investigation culminated in the arrest of the scammers and a recovery of funds this August.

The StableMagnet rugpull ended in arrests and a recovery of funds (Source)


CZ Speaks

In a substantial address to the community Changpeng Zhao offered further advice and insights, urging users to exercise caution and good sense when dealing with DeFi projects. While the longstanding truisms of DeFi seem self-evident to more experienced heads, the influx of new investors in crypto means that old advice is continually worth repeating.

He began by reminding users DYOR or to do your own research which CZ dubs the ‘golden rule’. In the light of the Squid Game rugpull, which offered many red flags for anyone caring to investigate, the Binance CEO explaied why users must always dig a little deeper to get to the truth about a project.

“SQUID won’t be the first or last DeFi scam. Over the past year, more first time investors have entered the markets than at any point that I can remember,” he said. “We’re entering a period of peak speculation—people are looking for the next get rich quick scheme or 100X opportunity. The truth is, those 100X don’t come along often. And when they do, they usually come with a ton of risk, sometimes so much so that the lines get blurred between investing and gambling.”

For new users CZ went on to recommend using centralized exchanges as part of the training and upskilling process. While centralized exchanges do not guarantee safety and mistakes can be made, the presence of an intermediary does offer additional safeguarding. Tokens on centralized exchanges may also have passed vetting procedures, most certainly in the case of larger, more reputable companies such as Binance.

Despite his recommendation for centralized exchanges, CZ remains bullish on the DeFi sector as a whole. Perhaps surprisingly the Binance CEO went on to affirm his belief that the future of the industry lies with decentralization and not centralization.

“To me, the benefits of DeFi far outweigh the drawbacks, but you need to arm yourself with crypto knowledge first,” he concluded.

Binance urges anyone with information about an ongoing scam to contact their investigation team at investigations@binance.com.

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Robert D. Knight

Robert D. Knight is an experienced journalist and copywriter who has been working in crypto for 4+ years. His bags are heavy in ETH and BTC, plus he also hodls some smaller cryptocurrency.

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