05-27-2024, 04:17 PM
Rug pull scams in the crypto market occur when developers create a new cryptocurrency or DeFi project, attract substantial investments, and then abruptly withdraw all funds, leaving investors with worthless tokens. One example is the 2020 scam involving DeFi project Harvest Finance, where the anonymous developers exploited a loophole, draining $24 million. Another instance is the Thodex exchange in Turkey, where the founder disappeared with $2 billion in investors' funds. Another example is the Squid Game token scam in 2021 saw developers vanish after the token's value skyrocketed, stealing an estimated $3.38 million from investors.