Squid Game Crypto Token SQUID Collapses in Rug Pull, Losing Investors $3.4 Million
Incident Details
Summary
In late October 2021, anonymous developers launched 'SQUID', a cryptocurrency claiming to be linked to the Netflix show Squid Game. The token surged from $0.01 to over $2,800 within days due to viral social media hype, FOMO buying, and coverage by major crypto publications. On November 1, 2021, the developers executed a rug pull: they withdrew all liquidity from the trading pool in seconds, crashing the token's price from $2,800 to essentially zero. Investors lost approximately $3.4 million. The token's code included an anti-dumping mechanism that prevented buyers from selling — a red flag missed or ignored by most buyers. The incident illustrated the dangers of meme coins and the ease of anonymous crypto fraud.
Related Incidents
News Explorer — Ethereum User Loses $600K in Address Poisoning Scam - Decrypt
An Ethereum user lost $600,000 on February 17, 2024, after falling victim to an address poisoning scam. This crypto scam involved fraudsters sending spam transactions from similar-looking addresses to confuse the user during cryptocurrency transfers. The incident highlights a common method used by scammers to cause significant financial losses for users.
Weekly Blockchain Blog - February 2026 #3 | BakerHostetler - JDSupra
Daren Li, a dual national, was sentenced in absentia to 20 years in prison for laundering more than $73 million obtained through an international cryptocurrency investment scheme. The scam operated from centers in Cambodia. Li had previously pleaded guilty in November 2024 but fled supervision in December 2025. The U.S. Department of Justice announced his sentencing.
WazirX Exchange Hacked for $230 Million by North Korea's Lazarus Group; Indian Customers' Funds Frozen
On July 18, 2024, hackers drained approximately $230 million — nearly half of WazirX's total assets — from the Indian crypto exchange's multi-signature wallet. Blockchain analysts including Elliptic attributed the attack to North Korea's Lazarus Group. WazirX suspended all withdrawals following the hack, freezing funds for millions of Indian users. The exchange filed for restructuring in Singapore and faced lawsuits in India. The hack illustrated the continued vulnerability of centralized exchanges to state-sponsored cryptocurrency theft, and the devastating impact on retail users who keep assets on exchanges.