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Scammers steal $3.3 million by pulling rug from under ‘Squid Game’ cryptocurrency investors

squid game cryptocurrency scam

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    Within days of launching, SQUID coin was shuttered and its creators made away with millions, suggesting it was a cryptocurrency scam known as a “rug pull.”

    Rise in popularity: Although unaffiliated with the hit Korean Netflix show “Squid Game,” the cryptocurrency took advantage of its namesake’s popularity to convince more than 40,000 people to invest.

    • The currency began at just $.01 per token and inflated 83,000% to reach a peak of $2,856.65 before ultimately crashing.
    • The tokens were touted as the currency for a forthcoming “play-to-earn” online game reminiscent of the Netflix series which was promised to go live later in November.
    • Some investors reported being taken in by the coin’s name, believing there was a relationship between the currency and the Netflix project.

    Rapid collapse: The currency is now worth $0 and its social media, website, and email are all now defunct, with the creators’ identities yet unknown.

    • A red flag was raised early on by skeptics who noticed it was nearly impossible to sell the coin and cash out after purchasing.
    • SQUID is now being labeled as a “rug pull,” referring to a scam in which the creators of a cryptocurrency cash out for real money and stop others from trading, effectively draining the currency of value.
    • One Shanghai investor told CNBC he lost his entire life savings of $28,000 to the scam.

    Experts warn that just because a new cryptocurrency bears the name of a popular show or trend, investors should not assume any affiliation.

    Featured Image via Netflix / “Squid Game”

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