Scam library
Rug pull / DeFi exit scam
In a rug pull, project insiders attract investment into a token or pool, then remove liquidity or mint and dump supply, leaving holders with worthless assets.
Reviewed by the AssetTrace investigations team
How does Rug pull / DeFi exit scam work?
- 1
A new token or yield project launches with heavy marketing and influencer promotion.
- 2
Liquidity and deposits build as the price climbs.
- 3
Insiders remove liquidity, mint hidden supply, or disable selling.
- 4
The token collapses and the team disappears.
How does AssetTrace trace Rug pull / DeFi exit scam losses?
We trace liquidity-removal and insider flows, attribute the controlling addresses, and document the mechanism for counsel and exchanges where off-ramping occurs.
Typical loss pattern
Extracted value is commonly bridged across chains and laundered before reaching a cashable venue.