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Squid Game cryptocurrency scam under investigation by Binance.

• On Thursday, Binance said that it was actively trying to track down the Squid Game token scammers.
• "We're using blockchain analytics to identify rogue actors," the crypto exchange told Insider.
• Over the weekend, the SQUID token soared from $0.01 to nearly $3,000 before plummeting to zero on Monday.

On Thursday, Binance, one of the major cryptocurrency exchanges, announced the establishment of a team of investigators to track down the Squid Game token scammers.

The SQUID token, which was inspired by Netflix's hit Korean-language series "Squid Game," surged from $0.01 to roughly $3,000 over the weekend before falling to $0 on Monday. The associated websites and social media accounts likewise went offline, indicating that any potential scam was over at the time.

A spokesman for Binance told Insider that the company is looking into ways to help the community, such as blacklisting connected addresses and "deploying blockchain analytics to identify rogue actors." Binance will also inform law enforcement in the relevant jurisdictions of its findings.\

In an emailed statement, a Binance spokeswoman said, "Our security team has initiated an investigation - as a gesture of goodwill."

The scammers allegedly made off with roughly $3 million. After witnessing the headlines about the spike of dogecoin-inspired shiba inus, one person, like many others, put their whole life savings into the coin, according to CNBC.

"The truth is, SQUID will not be the first or last DeFi scam," Binance CEO and co-founder Changpeng Zhao, often known as CZ, said in a blog post on Thursday.

Changpeng Zhao urged people to arm themselves with knowledge about cryptocurrency. He added that more first-time investors had entered the market in the last year than at any other period in history.

"People are looking for the next get-rich-quick scheme or a 100X opportunity, and we're entering a moment of peak speculation.

The truth is that those 100X don't show up very often. And when they do, they frequently come with a high level of risk, to the point that the lines between investing and gambling get blurred," Changpeng Zhao said.