Cryptocurrency exchange platform, Binance announced that the company is investigating the viral squid game token fraud that scammed victims of their BNB coin deposits with the phony DeFi Squid created on Binance Smart Chain. This was contained in a press release signed by Binance CEO CZ Binance.
CZ Binance clarified that Binance couldn’t have stopped the SQUID DeFi scam as the Binance Smart Chain like Ethereum smart chain are built on open source contract. This means that owners of open source blockchains have no influence or control over projects that are built on their network.
The squid game token scammers made away with $2.5 million in Binance Token according to diutocoinnews report.
As a way of showing support to wider crypto community, Binance CEO noted:
“Our security team proactively launched an investigation as a way to show our support for the wider crypto community. I can confirm we are taking the following actions:
- 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) “
He called on crypto investors to do diligence research on DeFi exit scams before participation.
“The truth is, SQUID won’t be the first or last DeFi scam,” Binance CEO and co-founder Changpeng Zhao – wrote in a press release on Thursday.
CZ urged people to arm themselves with knowledge about crypto.
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