Binance Wants Squid Token Rug Pullers To Face The Law

So far this year, the squid token rug pull is the biggest. The token, which became popular on the back of the Netflix hit show squid game, surged in price to over $2,750 but dipped sharply to $0.001 within minutes. Those behind the rug pull made away with $3m. However, the global crypto exchange, Binance, has announced that it would make all efforts to ensure that these scammers face justice.

Binance Collaborates With The Authorities

An official from the exchange said there had been many rug-pulls in the crypto market in recent times. Hence, the company is seeking partnership with relevant authorities to reclaim the funds and make the scammers face the wrath of the law. 

The official further stated that “our exchange continues to block wallets related to the developers and will use all the resources at our disposal to fish the culprits.” The exchange already disclosed that the culprits made their identities anonymous through tornado cash. Tornado cash is a blockchain firm that specializes in making transactions anonymous. 

The Ethereum-built platform receives payments from its customers using ether. Even such transactions are made private by being sent around to avoid being traced. Binance also announced that it would reveal any details about the culprits only to the appropriate authorities.

The Crash

Following the popularity of the squid game movie, some unscrupulous elements gathered to develop a squid token to take advantage of the movie’s popularity. They even created a whitepaper to reveal the schedule of games, participation rules, the winning bonuses, and other details about the token. The token’s price surged amidst the hype, with the token gaining as much as 2,300% in less than 24 hours.

But CoinMarketCap sent the first warning sign when it disclosed that it had received complaints from several traders who were unable to sell their assets via Pancakeswap. A few days after CoinMarketCap’s notice, the project’s team sent a telegram notification stating that they wouldn’t run the project again. The token’s smart contract admin sold all his tokens almost immediately after the notice, and the token’s price was reduced to $0.001 shortly afterward.

Binance Hires Former IRS Agent As Its Director Of Suspicious Activity Report

The top crypto exchange has also officially revealed the appointment of Amjad Qajish to head its department of Suspicious Activity Report. Qaqish spent 23 of his 30 years with the IRS’s criminal investigation section. He gained experience identifying crypto-related frauds, terrorist funding, and other shady deals in the crypto world.

His new position in Binance will see him perform similar roles and be responsible for the safe-keeping of user funds and accounts. Qaqish stated that identifying and removing the rotten eggs in the crypto market is one way to ensure the successful longevity of the industry.

Binance seems to be putting its house in order, having battled with financial watchdogs from various regions almost every month of this year so far. This appointment is proof of the exchange’s determination to be in the good books of the relevant financial agencies.

By Edward Harris
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