High riskCrypto & Investment

Rug Pull Scam

In a rug pull, developers heavily promote a new crypto token or project to attract investment and push the price up, then suddenly sell their holdings and abandon it, leaving investors with tokens they cannot sell.

Quick verdict

Risk level
High risk
Scam type
Crypto exit scam
Main red flag
Intense hype and promises of fast gains around a brand-new token with anonymous developers.
What to do first
Do not rush in. Research the team, the token's liquidity, and whether holdings are concentrated before investing anything.

What to know first

In a rug pull, developers heavily promote a new crypto token or project to attract investment and push the price up, then suddenly sell their holdings and abandon it, leaving investors with tokens they cannot sell.

Crypto and investment scams promise high or guaranteed returns with little risk, usually through fake platforms that display staged gains. Small test withdrawals build trust before you are pushed to invest more, then blocked from withdrawing behind endless "fees" and "taxes".

The core pattern to watch for is clear: Intense hype and promises of fast gains around a brand-new token with anonymous developers. Do not rush in. Research the team, the token's liquidity, and whether holdings are concentrated before investing anything.

Related tricks worth knowing: the Crypto Investment Scam and the Fake Crypto Exchange Scam. For the wider picture, browse the Crypto & Investment Scams guides or run the message through our scam checker.

Scam statistics

$4.6B
reported lost to investment scams in the US in 2023, the top fraud category by losses
Source: US Federal Trade Commission
$1B+
in cryptocurrency reported lost to scams between 2021 and mid-2022
Source: US Federal Trade Commission

Tell-tale red flags

  • Heavy hype and promises of guaranteed or extreme returns in a short time
  • Anonymous developers with no verifiable track record
  • Pressure to buy quickly before a 'launch' or before you 'miss out'
  • A small group holding most of the tokens, which they can dump at any time
  • Difficulty selling, withdrawing, or finding clear information about the project

Staying safe

  • Research the team, audits, and token distribution before putting in money
  • Be cautious of any project promising guaranteed or extreme returns
  • Only consider money you can afford to lose, and avoid acting on hype alone
  • Step back from any project that pressures you to buy immediately

How it usually reads

Example pattern, not a real report
Example pattern: 'This new coin is about to 100x! Devs are doxxed, liquidity locked, community is huge. Get in before launch tonight - early buyers win big. Don't miss the next big thing!'

This is a fictional, anonymised example used to illustrate the pattern. It is not a verified real message, and any names are used only to show how the scam typically reads.

What to notice: Intense hype and promises of fast gains around a brand-new token with anonymous developers.

Steps if you already acted

  • Stop sending more funds, even if you are told it will recover the price
  • Document the token address, transactions, and the promoters involved
  • Report the project to the exchange or platform and your national fraud body
  • Be wary of anyone who later offers to 'recover' your lost crypto for a fee

Common mistakes

  • Do not invest based on social media hype or influencer promises alone
  • Do not buy more to 'average down' on a project that looks abandoned
  • Do not share wallet seed phrases or private keys with anyone

Scams like this one

High risk Crypto & Investment

Crypto Investment Scam

This scam promises high or guaranteed crypto returns through a fake platform, shows paper profits to encourage bigger deposits, then blocks withdrawals.

Created by Scam or Safe Editorial Team
High risk Crypto & Investment

Fake Crypto Exchange Scam

A fake crypto exchange or trading app shows convincing balances and profits to encourage more deposits, then blocks withdrawals and demands 'fees' or 'taxes' before you can take any money out.

Created by Scam or Safe Editorial Team
High risk Crypto & Investment

Crypto Recovery Scam

This scam targets people who already lost money, promising to recover lost crypto or funds for an upfront fee. The recovery is never delivered, and the victim loses even more money to the second scammer.

Created by Scam or Safe Editorial Team

Your questions answered

What exactly is a rug pull?
It is when a project's creators promote a token to attract buyers, then sell off their own large holdings and abandon it, causing the price to collapse and leaving others unable to sell.
How can I spot a likely rug pull before investing?
Watch for anonymous teams, extreme return promises, concentrated token holdings, and pressure to buy fast. Independent audits and locked liquidity reduce risk but are not a guarantee.
The developers say they are 'verified' - does that make it safe?
Claims of being verified or audited can be exaggerated or faked. Check these claims independently rather than relying on the project's own marketing.
Can I get my money back after a rug pull?
Recovery is often difficult because crypto transactions are hard to reverse. Be especially careful of 'recovery' services that ask for an upfront fee, as these are frequently a second scam.

Last reviewed June 2026 · Written & reviewed by the

Disclaimer: This page provides educational information only to help you recognise common scam patterns. It is not legal, financial, cybersecurity, or law enforcement advice, and it does not confirm whether any specific message, company, or person is genuine or fraudulent. When in doubt, contact the official organisation directly and report concerns to your local authorities.