Crypto exchange Binance is investigating the SQUID token crash and considers it a classic “rug pull” scam, according to a Barron’s report.
- Binance has frozen and blacklisted wallet addresses tied to the token’s developers, according to the report. It is also using analytics tools to identify the developers.
- The developers appear to be using Tornado Cash to cover their tracks, Binance told Barron’s.
- The play-to-earn SQUID protocol is built on Binance Smart Chain.
- Binance is looking to recover lost funds and plans to communicate its findings with law enforcement, according to the report.
- “These types of scam projects have become all too common in the [decentralized finance] space,” Barron’s quoted a Binance spokesperson as saying.
- As reported earlier this week by CoinDesk, the price of the SQUID token has crashed to nearly zero and its developers have said they’ve left the project.
- Binance did not immediately respond to a request to confirm details of the report.
Read more: Play-to-Earn Squid Token Rockets 35,000% in 3 Days; Some Users Unable to Sell It
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