$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
rug pull token scam
Developers launch a new cryptocurrency token with heavy promotion, attract investor funds into the liquidity pool, then drain all liquidity and disappear with investors' money.
“bitcoin scam”
↑ 72%Key indicators
Usually targetsCrypto investors
Often hitsFreelancers and contractors
Common regionGlobal
Last updated2026-04-04
Estimated impact
$6.8K
median reported loss
Typical range$360 – $270K
Recovery rate~3%
Annual reports69,461
Scam breakdown
1
Developers create a new token, add initial liquidity to a decentralized exchange, and promote it aggressively on Telegram and Twitter
2
As buyers drive the price up, the developers accumulate the deposited ETH, BNB, or other base currency in the pool
3
Developers remove all liquidity in a single transaction, crashing the token price to near zero and leaving investors unable to sell
What to do first
Check if liquidity is locked using tools like Team Finance or Unicrypt before investing in any new token
Related terms
liquidity rug pulltoken exit scampump and rugCryptocurrency scamsTelegramStableCrypto investorsNew crypto usersDeFi usersFreelancers and contractorsTech workers and developersInvestors and tradersGloballiquidity rug pulltoken exit scam
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Christopher, 32, a crypto investors, encountered what appeared to be a legitimate cryptocurrency scams situation while using Telegram. Developers create a new token, add initial liquidity to a decentralized exchange, and promote it aggressively on Telegram and Twitter
Step 2
What happened next was calculated: As buyers drive the price up, the developers accumulate the deposited ETH, BNB, or other base currency in the pool
Step 3
The pressure escalated quickly: Developers remove all liquidity in a single transaction, crashing the token price to near zero and leaving investors unable to sell
The outcome
Christopher realized something was wrong when anonymous development team with no verifiable track record. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
Check if liquidity is locked using tools like Team Finance or Unicrypt before investing in any new token Christopher's experience shows why anonymous development team with no verifiable track record and token contract has not been audited by a reputable smart contract auditing firm are the clearest early warning signs.
How to identify it
- Anonymous development team with no verifiable track record
- Token contract has not been audited by a reputable smart contract auditing firm
- Liquidity pool tokens are not locked in a time-locked contract
- Pause before paying, clicking, or sharing information. Scammers rely on speed.
- Verify the sender, company, or agency using a phone number or website you already know is legitimate.
- Treat secrecy, urgency, and off-platform payment requests as strong scam signals.
What to do now
- ✓Check if liquidity is locked using tools like Team Finance or Unicrypt before investing in any new token
- ✓Verify the smart contract on blockchain explorers and look for audit reports from firms like CertiK or Trail of Bits
- ✓Never invest more than you can afford to lose in newly launched tokens with anonymous teams
What to save before reporting
- ✓Save the message, profile, phone number, email, or URL that was used.
- ✓Keep payment confirmations, receipts, and account alerts before you dispute or delete anything.
- ✓Write down the timeline while the details are still fresh.
- ✓Save the full chat or call log before blocking the sender so the reporting path still has the original context.
How big is this problem
You are not alone — this scam affects millions of people.
These numbers come from government agencies and official reports. If you have been affected, know that this is a widespread problem — not something that only happens to careless people.
FTC 2024 fraud losses
Imposters
Most common FTC fraud category in 2024
FTC says imposter scams remained the most commonly reported fraud category in 2024.
History and evolution
- This scam family tends to persist because the social-engineering pressure works even when the exact scripts, platforms, and payment methods change.
- The specific packaging evolves over time, but the core pattern usually stays the same: create urgency, control the channel, and push action before verification.
- Chainalysis estimated that rug pulls accounted for over 2.8 billion USD in cryptocurrency theft in 2021, and remain a top fraud category in DeFi
Recovery and follow-up
- ✓Save the messages, receipts, account alerts, and transaction details before you block or delete anything.
- ✓Report the scam through the official platform or government channel that best matches where it happened.
- ✓Check if liquidity is locked using tools like Team Finance or Unicrypt before investing in any new token
- ✓Verify the smart contract on blockchain explorers and look for audit reports from firms like CertiK or Trail of Bits
- ✓Never invest more than you can afford to lose in newly launched tokens with anonymous teams
Why this pattern keeps working
Even when the story changes, most scams still use the same pressure pattern: urgency, authority, and a request to move money or data fast.
Chainalysis estimated that rug pulls accounted for over 2.8 billion USD in cryptocurrency theft in 2021, and remain a top fraud category in DeFi
OpenScam research
Where to report it
If you have been targeted by this scam, reporting it helps authorities track the pattern and protect others. Global has dedicated agencies that handle fraud reports.
Report cross-border scams
econsumer.gov (ICPEN)
International Consumer Protection and Enforcement Network portal for reporting cross-border online scams. Reports are shared with consumer protection agencies in 40+ countries.
Interpol financial crime guidance
Interpol
International policing guidance on online financial fraud, romance scams, and investment fraud operating across borders.
Report phishing emails
Anti-Phishing Working Group
Global industry coalition for reporting phishing emails and URLs. Forward phishing to [email protected].
Explore further
Understand the bigger picture
Who is most at risk
Who this scam targets
Primary targets
Crypto investors, New crypto users, DeFi users
Geographic concentration
Global
Primary channel
Telegram — Cryptocurrency scams
Why this group is vulnerable
Crypto investors are particularly vulnerable because this scam exploits trust in familiar brands, authority figures, and time-sensitive decisions. The ongoing nature of reports suggests that awareness among this demographic remains low.
Sources and methodology
How we verify this information
OpenScam tracks scam patterns using a combination of government consumer protection databases (FTC, IC3, Action Fraud), platform-specific fraud reports, and verified consumer complaint data. Each entry is cross-referenced against at least two independent sources before publication.
Severity ratings are based on financial impact potential, reversibility of damage, and volume of reports across multiple reporting channels. Trend velocity reflects the rate of change in report volume over the most recent 90-day window.
This page was last verified on 2026-04-04. Red flags, recovery steps, and reporting resources are reviewed quarterly against current agency guidance.
Evidence and indicators
- Chainalysis estimated that rug pulls accounted for over 2.8 billion USD in cryptocurrency theft in 2021, and remain a top fraud category in DeFi
Source notes
- OpenScam research
Frequently asked questions
Common questions about rug pull token scam
How does the rug pull token scam work?+
Developers create a new token, add initial liquidity to a decentralized exchange, and promote it aggressively on Telegram and Twitter As buyers drive the price up, the developers accumulate the deposited ETH, BNB, or other base currency in the pool Developers remove all liquidity in a single transaction, crashing the token price to near zero and leaving investors unable to sell
What are the warning signs of rug pull token scam?+
Anonymous development team with no verifiable track record Token contract has not been audited by a reputable smart contract auditing firm Liquidity pool tokens are not locked in a time-locked contract
What should I do if I encounter rug pull token scam?+
Check if liquidity is locked using tools like Team Finance or Unicrypt before investing in any new token Verify the smart contract on blockchain explorers and look for audit reports from firms like CertiK or Trail of Bits Never invest more than you can afford to lose in newly launched tokens with anonymous teams
Who is most at risk for rug pull token scam?+
This scam primarily targets Crypto investors, New crypto users, DeFi users. It is most commonly reported in Global and typically appears on Telegram.
Is rug pull token scam still active?+
rug pull token scam is currently on our watch list. It has been reported across US, UK, AU, CA. Last updated 2026-04-04.
Related scams
Similar scams to watch out for
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What to do first
Assume unsolicited recovery outreach is fraudulent.
Targets
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↑ 80%Freelance project unlock fee scam
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What to do first
Do not buy access tools or badges to start freelance work.
Targets
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What to do first
Use only major payment tools or in-person transactions you can verify.
Targets
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Seen in
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Help someone avoid this scam.
Scammers succeed because people do not talk about it. If you or someone you know has been affected, there is no shame in it — it happens to millions of people every year. Share this page with friends and family so they know what to look for.