Crypto rip-off scam
Squid Game Coin: Millions fraud with the Netflix hype
A supposed cryptocurrency for the Netflix hit “Squid Game” went through the roof last week. Now the masterminds have run away with a million-dollar booty.
The hype about the crypto currency was almost as great as the eponymous Netflix series: Within a few days, the value of the crypto coin called “Squid Game” shot upwards: if it was worth 1 cent when it started on October 26, it only reached a week later on Monday morning the peak of 2856 dollars (about 2500 euros). Then, in one fell swoop, investors’ money was gone.
Because behind the hype coin, about the rapid rise of which numerous serious media had reported, was apparently nothing more than a clever scam. At least that is what all the signs point to. Yesterday morning all monetary values of the coin were sold in one fell swoop, the website for the coin and a Twitter channel disappeared without a trace. The money was derived from online exchanges via so-called tumblers, which blur the origin of crypto coins. And investors were left with their coins that were suddenly worthless.
Already last week observers warned that this would happen, for example on the US tech blog “Gizmodo”. Because there was actually a lot of evidence that the hype coin could be a fraud. The most important warning sign: The coin could be bought, but there was no way for investors to sell it. Instead, according to the coin’s website, they bought a supposed seat in a game that was supposed to be based on the Netflix series. And now it will probably never take place. Further warning signs were the one-sided communication of the operators, which did not allow any comments from the users either on Telegram or on Twitter, according to “Gizmodo”.
For the operators of the coin, the rip-off action should have paid off: In several of the publicly viewable transactions, they moved millions of amounts through tumblers, in a single transaction it was about 3.37 million dollars (about 2.9 million euros). The value of the coins that remained with the customers is 0.2 cents.
Such fraudulent actions are not uncommon with crypto currencies, in the scene they are called “rug-pull” (for example: pulling the carpet away from under your feet). Even the reference to current pop culture isn’t new. It was only in the spring that there was a coin fraud with reference to Disney’s “Star Wars” series “The Mandalorian”, in which the buyers were similarly withdrawn.
Sources: Gizmodo, Coinmarketcap