Exit Scam

An Exit Scam occurs when the operators of a business, project, or investment platform suddenly disappear with investors’ funds, abandoning the project without delivering the promised returns or products.

In the crypto and blockchain world, exit scams often happen in Initial Coin Offerings (ICOs), DeFi projects, and NFT marketplaces, where project creators attract investors with big promises — then “exit” by shutting down websites, deleting social accounts, and transferring funds to private wallets.

These scams can take many forms:

💸 Rug Pulls: Developers drain liquidity from a token or DeFi pool and vanish.

🚫 Fake ICOs: Projects that never intended to launch any real product.

🎭 Ponzi or Pyramid Schemes: Platforms that use new investors’ money to pay old ones until collapse.

To avoid exit scams, investors should research the project team, check smart contract audits, analyze liquidity and token locks, and avoid unrealistic returns.
As crypto evolves, security awareness is the best protection — always verify before you invest.