7 lines
475 B
Markdown
7 lines
475 B
Markdown
# Exit Scam
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An *exit scam* or *rugpull* is a type of fraud in which the operators of crypto scheme abscond with investor money or crash an [ililquid](liquidity.md) market resulting in a net transfer of public funds to a [cartel](cartel.md) of insiders.
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The anonomous nature of many [defi](defi.md) projects means these types of fraud are frequent and difficult to trace or prosecute by law enforcment.
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See also [securities law](security.md) and [KYC requirements](kyc.md).
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