The SQUID token, inspired by the Netflix show Squid Game, turned out to be a deceitful cryptocurrency scheme, causing investors significant losses estimated at around $16 million. The scammers behind the token orchestrated a plan to artificially inflate its value, enticing unsuspecting investors to buy in.
Several reputable news outlets, including BBC, CNBC, and Yahoo, took notice of this fraudulent scheme. In a podcast series titled "Squid Scam: Chasing the NFT Con Artists," hosts delved into the investigation. They traced the domain name service associated with SQUID and discovered phone numbers, names, and addresses, providing valuable leads.
Further investigations revealed the involvement of a person with a history of scams dating back to 2013. By analyzing an email address associated with the scammer, investigators pinpointed their location in Hong Kong, where they had vanished before the authorities' arrival.
To add to the victims' misfortune, a fake law firm emerged, claiming to help sue the SQUID scammers and duping investors into paying for legal action. This faux legal firm vanished after pocketing the victims' money. It's suspected that the scammers had previously executed a similar, smaller scam as a test run.
Curiously, a Reddit account, created just four days before the rug pull, promoted this fraudulent law firm, directing victims to seek their assistance. The "legal firm" turned out to be the scammers themselves, exacerbating the victims' losses.
This incident highlights the importance of being cautious when seeking advice on platforms like Reddit, as not all information shared is trustworthy or well-intentioned. Many people fell victim to the rug pull due to FOMO (Fear of Missing Out) without conducting proper research.
The SQUID rug pull was evident from the beginning, as the whitepaper revealed restrictive conditions, making it challenging for investors to sell their coins unless they purchased more expensive ones, essentially forcing them to hold onto their assets.
Ultimately, this serves as a reminder that projects hyped up without genuine utility may turn out to be rug pulls or fail to deliver on their promises, resulting in significant losses for unsuspecting investors.
Comments