A cryptocurrency called SQUID, based on but not affiliated with the popular Netflix series Squid game, allegedly scammed users over US $ 3 million.
The alleged scam happened on the morning of November 1, when the price of the cryptocurrency peaked at US $ 2,861 per coin before dropping to less than a cent around 5:40 a.m. ET, per CoinMarketCap.
A scam like this is called a “carpet draw”, by Gizmodo, where the creators of a cryptocurrency cash their possession of the coin for real money, which quickly devalues the value of the cryptocurrency. According to cached translation details, the suspected crooks stole about US $ 3.3 million.
As Gizmodo points out that the SQUID room had only been released a week before the alleged “carpet pull” and had been littered with red flags in the weeks leading up to its launch.
These included a website now unavailable which had many strange spelling and grammar errors, a Telegram channel that did not allow comments from strangers, as good as a Twitter account which has disabled the function allowing users to reply to its messages.
But perhaps the biggest red flag was that users who bought SQUID parts were unable to sell them. SQUID’s website and Twitter account have since been deleted as a result of the “rug pull”.
Meanwhile, administrators at the SQUID Telegram group have claimed they were not responsible for the “rug pull” event, claiming that “someone is trying to hack our project.”
“We are trying to protect it but the price is still abnormal,” they continued. “Squid Game Dev doesn’t want to continue running the project because we are depressed by the crooks and overwhelmed with stress.”
Squid game Director Hwang Dong-hyuk had previously discussed potential ideas for a second season if approved. There have also been talks about a potential video game and “consumer goods” such as merchandise for the show, according to Kim Min-young, director of Netflix Asia.