In a report from CNBC, Binance noted that the scam was likely an attempt to cash in on hype around blockchain and crypto. The company is investigating whether or not this particular token had ties with other tokens it issued through its platform before and after the fall of Squid Game Token.

According to Barrons, a Binance intelligence team is now analyzing the blockchain and gathering crucial data and information that can aid authorities in apprehending the Squid Game token scammers.

The lucrative SQUID cryptocurrency was inspired by the South Korean program “Squid Game” and has skyrocketed in value in only a few days.

However, when SQUID values plummeted to zero, the token’s appeal swiftly waned, and its creators chose to abandon their project and flee with the money invested.

Investigative tactics used by Binance

Binance is said to be looking at new ways to track down the crooks. The business is “blacklisting addresses associated with the developers and is applying blockchain analytics to detect the crooks,” according to a spokesman.

The exchange will also provide authorities with any pertinent information discovered in order to aid them in their inquiry. The play-to-earn SQUID coin was created on Binance Smart Chain, although the exchange has said that the protocol is an open-source ecosystem and that the business has no control on initiatives created on the network.

Binance’s spokesman also noted that these scamming methods have grown rather popular in the crypto field, and that the company is working hard to discover as many leads as possible in order to track down the true perpetrators.

The fraudsters utilized a bitcoin mixing service called Tornado Cash to hide their identities, according to the platform. Tornado Cash’s creators have yet to respond.

When it comes to combating cryptocurrency crime, Binance has a positive track record. The exchange has previously assisted police in revealing the identity of a criminal organization known as FANNYCAT, which is known for coordinating repeated ransomware operations and demanding cryptocurrency payments from victims.