Crypto-asset trading platform Binance plans to blacklist wallet addresses linked to the developers of the Squid Game token.
According to a company spokesperson, Binance is investigating the crash process of the SQUID token and believes it is a scam.
The spokesperson noted that the exchange is conducting research to assist those who have been harmed by these tokens, including “blacklisting developer-linked addresses and deploying blockchain analytics to identify bad actors.”
Binance will also share findings on the subject with law enforcement.
The SQUID protocol is built on Binance Smart Chain. However, Binance emphasized that BSC is an open-source ecosystem and therefore the company has no oversight over projects built on the network.
A Binance spokesperson stated that investments are made quickly without appropriate detections and that such fraudulent projects have become very common in DeFi.
As it will be remembered, the price of the SQUID token was almost zero and the developers said that they left the project.
According to the initial investigative report, the token developers used Tornado Cash to cover their tracks.