Exit Scam

An exit scam occurs when the operators of a cryptocurrency project or exchange suddenly disappear with investors' funds, leaving users with no way to recover their investments. These scams often target initial coin offerings (ICOs) or other fundraising events where large sums of money are raised with little oversight. Once enough funds are collected, the project founders vanish, abandoning their promises and causing significant financial losses to investors.

Exit scams have become a notorious issue in the cryptocurrency space, where the anonymity of blockchain technology can be exploited by fraudulent actors. To minimize the risk of exit scams, investors are encouraged to perform thorough due diligence (DYOR) on the project’s team, technology, and community before committing funds.