Exit Scam
When a project's team abruptly abandons it and disappears with user funds, without warning and without any attempt to continue operating.
An exit scam occurs when the team behind a crypto project, exchange, or platform suddenly ceases operations and disappears with user funds, with no further communication, support, or attempt to wind down operations responsibly. It differs from a project simply failing or shutting down transparently in that an exit scam is a deliberate, often premeditated abandonment specifically timed to maximize the funds the team can extract before anyone can react.
An exit scam is related to but distinct from a rug pull (see Kaavon's "Rug Pull" glossary definition), which specifically refers to a team pulling liquidity from a token's trading pool — an exit scam is the broader pattern of a team vanishing with user funds, which can happen through a rug pull, a bogus exchange or lending platform, a fake investment fund, or any other structure where a team holds custody of user assets. Warning signs often cited for exit-scam risk include anonymous teams, unaudited or undisclosed control over user funds, unusually high promised returns, and inconsistent or evasive communication as problems first emerge.
Examples
- Several crypto lending platforms and exchanges have exit-scammed by halting withdrawals and going silent while still holding customer deposits.
- An exit scam can occur through many different mechanisms — a token rug pull, a fake exchange, or a sham investment fund — but all share the pattern of a team disappearing with user funds.