Investment and crypto fraud · Also called crypto rug pull, exit scam, fake token, honeypot token
Rug pull or fake token
A rug pull is a crypto scam where the people behind a new token or project hype it, attract buyers, then suddenly take the money and abandon it. They may drain the trading pool, sell their huge holdings, or build code that stops buyers from selling, leaving investors holding worthless tokens.
How it works
- A new token, NFT collection, or crypto project launches with a slick website, a roadmap, and heavy promotion on social media and chat groups.
- Influencers, bots, or paid promoters create excitement and fear of missing out as the price rises.
- The creators keep control of most of the supply, the trading pool, or hidden code in the smart contract.
- They pull the liquidity, dump their tokens, or block selling, and the project's accounts go silent.
Red flags
- The team is anonymous and the project cannot be linked to real people or a registered company.
- A small number of wallets hold most of the tokens.
- The project promises huge returns and relies on hype, countdowns, and influencer posts.
- You can buy the token but other buyers report that they cannot sell it.
If you are targeted
- Stop contact with the project's promoters and do not send more money to recover or unlock your tokens.
- Save the token contract address, wallet addresses, transaction records, and screenshots of the promotion.
- If you bought through an exchange, report the token and transfers to that exchange.
- Report it. Our Report a scam page lists where to report in your country, such as ic3.gov and ReportFraud.ftc.gov in the US.
- Expect recovery scams: anyone who contacts you offering to get your money back for a fee, including people claiming to be lawyers, regulators, or the FBI, is running a second scam.
Prevention
For individuals
- Only invest money you can afford to lose in new tokens, and never because of social media hype or a countdown.
- Research who is behind a project and search its name with the words scam and rug pull.
- Be wary of any project where a few wallets hold most of the supply or where selling is restricted.
By the numbers
Figures are for the reporting category this scam falls under, not this scam alone.
| Losses involving cryptocurrency reported to the FBI IC3 in 2025 (overlaps other categories, never summed) | $11.37B | US, 2025, FBI IC3 |
| Investment fraud losses reported to the FBI IC3 in 2025 | $8.65B | US, 2025, FBI IC3 |
Real cases
No documented case in the atlas yet. New cases are added as they are sourced.
Delivered through: Social media ads and posts
How official datasets classify it
- FBI IC3
- Investment
- FTC
- Miscellaneous Investments & Investment Advice
- Scamwatch
- Investment scams
Questions
- What is a rug pull in crypto?
- It is when a project's creators attract investors to a new token and then abandon it, taking the money. Investors are left with tokens that cannot be sold or are worth nothing.
- Can a rug pull be reversed?
- Usually not, because crypto transactions are final. Report it anyway, since law enforcement and exchanges can sometimes trace or freeze funds.