§ — Crypto scams · Rug pulls

What a rug pull is, how it is done, and the part other pages leave out.

A rug pull is a fraud in which the people behind a crypto token or project take the money invested in it and abandon it — most often by removing the liquidity that allows the token to be sold, so the price collapses and holders are left with an asset nobody will buy. This page explains each variant, follows where the money actually goes, and gives an honest answer to the question you came here with. That answer is uncomfortable: of every category of crypto theft, this is the hardest one to recover from.
Last updated: 1 August 2026Figures as of: 30 July 2026First response: within 2 business hours
Types of crypto theft4 pages
Type 01
Rug pulls
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§ 01 — How it works

How a rug pull is actually executed.

Almost all of them use one of four mechanisms. The first three are written into the project before a single investor arrives.
MethodWhat is doneVisible beforehand?
Liquidity removal
the classic hard rug
The creators withdraw the pooled funds that make the token tradeable. There is nothing left to sell into, and the price goes to effectively zero in one transactionYes — whether liquidity is locked, and for how long, is public
Sell restriction
honeypot
The token's code permits buying but blocks selling for everyone except addresses the creators control. Buyers watch the price rise and cannot exitYes — the restriction is in the contract from deployment
Unlimited mintingThe contract lets the creators issue new supply at will. They mint, sell into the buyers' money, and the value of everyone else's holding evaporatesYes — mint permissions are readable in the contract
Slow exit
soft rug
No single dramatic act. The team sells its own holdings gradually, development stops, and the project is left to die while the announcements continuePartly — large insider holdings are visible, intent is not

Why "it was in the contract" matters to your case. Where a rug pull was built into the code, the fraud was planned before any money arrived. That is a meaningful difference for a police report and for a court: it is not a project that failed, it is an instrument built to take deposits. The contract is permanent and public, so this can be demonstrated long afterwards — one of the few things working in a victim's favour here.

§ 02 — Timeline

The shape of it, from launch to silence.

Build credibility.

A website, a whitepaper, an audit badge that may reference a different contract than the one deployed, an active community, paid promotion.

Weeks to months

Attract deposits.

Buying is easy and works exactly as expected. Early sellers may even be allowed to exit, which produces genuine testimonials.

This is what makes the later loss so large

Execute.

Liquidity is pulled, or minting begins, or selling is switched off. In a hard rug this is a single transaction.

Seconds

Disperse.

Proceeds are swapped through decentralised exchanges, split across many addresses, bridged to other networks, and often routed through mixing services.

Hours to days — the window that decides recoverability

Disappear.

Website down, social accounts deleted, community channels removed — along with the promises made in them.

Which is why you must save the chat logs today
§ 03 — Recovery

Can it be recovered? The honest version.

Three features of a rug pull work against recovery at the same time, which is why we rank this category hardest:

No counterparty.

Decentralised exchanges and bridges have no operator to send a freeze request to and no account holder to identify. There is nobody to ask.

Pseudonymous from the start.

Unlike a theft from an exchange account, there was never a verified identity anywhere in the chain.

Dispersal is the design.

The proceeds are split and bridged deliberately, and quickly.

Where the opening is. Stolen value is only useful once it becomes ordinary money — and that almost always means a centralised exchange, which does have a compliance team and a customer behind the address. The realistic path in a rug pull case is: trace the proceeds through the dispersal, identify where they consolidate, and get them flagged and frozen at the point they touch a service that screens deposits. We flag stolen transactions to AML providers within four hours of intake, and an exchange freeze request takes 2–4 days once filed. Whether the funds arrive there before they are cashed out is what decides the case — and it is not something anyone can promise you in advance.

Recovery, if it comes, comes on the same timescale as everything else: 6–9 months from an exchange, 6–36 months for complex or multi-jurisdictional cases. A freeze is measured in days; being repaid is not. The full timings are on our data page.

What we will tell you on the free call. For many rug pulls the answer is that there is no realistic prospect of recovery — the proceeds went straight through a mixer, or were cashed out long ago, or the sum does not justify a multi-jurisdictional case. We decline those rather than accept them. Our published figure is 68% success rate on accepted cases · measured over the past 24 months, and it is accepted that keeps it honest.

§ 04 — First hours

What to do now.

Save the evidence before it is deleted.

Token contract address, your transaction hashes, the project's website, its social accounts, and the full Telegram or Discord history. Deployers remove their channels within hours, and the chat log is usually where the promises live.

Screenshots with visible dates; export the chat if you can

Do not buy more.

Averaging down into a token that cannot be sold converts a loss into a larger one. If selling fails or quotes an impossible price, the market is gone.

The price shown in your wallet is not liquidity

Do not pay anyone promising to reverse it.

A confirmed blockchain transaction cannot be reversed by anybody. Offers to do so are a second fraud.

See the warning below

Report it.

The formal block at an exchange rests on a police report, and the court order that returns money rests on the file behind it.

Where and how, by country: our reporting guide

Get the addresses flagged.

Send us the contract address and your transaction hashes. Flagging happens within four hours of intake; the assessment costs nothing and may end with us telling you not to proceed.

[email protected] · +971 56 182 9077 · reply within 2 business hours
§ 05 — The second scam

The people who will contact you next.

Rug pull victims are identifiable — holders of a collapsed token are a public list on the blockchain, and the project's community channels are open to anyone. Expect approaches offering recovery, often within days.

The FBI's Internet Crime Complaint Center has issued repeated advisories about fictitious law firms contacting crypto scam victims and offering to recover funds for an up-front fee. Between February 2023 and February 2024 alone, victims re-targeted this way reported losses of more than $9.9 million. Both advisories are public: PSA240624 and PSA250813.

The rule that protects you. Being approached is the warning sign — not the offer's contents. We do not cold-message victims, we are not affiliated with any government agency, and no agency refers cases to us. If someone approaches you in our name, it is not us; report it to IC3. Before engaging anyone, run the ten-point check on our verification page — our own registry entries are published in full on credentials.

§ 06 — Prevention

What is visible before it happens.

Not advice on what to buy — we are investigators, not advisers. These are simply the things that were readable in the contract in cases we have looked at.

Liquidity that is not locked

, or locked only briefly. If it can be withdrawn, at some point it can be withdrawn.

Mint permissions

that let the creators issue more supply after launch.

Sell restrictions or transfer fees

that apply to everyone except a small set of addresses.

Concentrated holdings

— a large share of supply in a handful of wallets connected to the deployer.

An audit badge that references a different contract

than the one actually deployed, or an auditor that cannot be found independently.

An anonymous team with no verifiable history

— the same test we ask you to apply to recovery firms, including ours.

§ 07 — Our limits

What we do not do.

Reverse transactions.

Nobody can. What can happen is a freeze after the funds reach a service with an operator.

Monero.

It cannot be traced, so we decline rather than bill the attempt.

Chinese OTC channels.

Outside what we can work effectively.

Cases where the source of the funds cannot be confirmed.

Non-negotiable.

Cases with no realistic prospect of recovery

— which, in this category, is many of them. Declined on the first call.

Legal practice.

Forensics and the evidence base are ours; police reports, freeze filings and court applications are carried out by partner law firms in the relevant jurisdiction.

Guarantees.

Recovery is decided by courts, exchanges and token issuers.

Related: all six types of crypto theft and their recoverability · wallet drainers · how our investigations work · what happens in the first four hours.

§ 08 — FAQ

Rug pulls — the questions we are asked.

A rug pull is a fraud in which the people behind a crypto token or project take the money invested in it and abandon it. The most common method is removing the liquidity that allows the token to be traded: the price collapses to nothing and holders are left with an asset they cannot sell. The name comes from having the rug pulled out from under you — the asset still exists in your wallet, but there is no longer anyone on the other side of a sale.

§ 09 — Authorship

Who wrote this, and who checked it.

Taras Podhorodetskyi

Founder and CEO, StarCompliance · blockchain investigations since 2022 · speaker, WOW Summit 2024 · interviewed by ForkLog, 23 July 2024

Reviewed by: compliance reviewer — name and role published with the next update of this page.

Disclaimer. This page is informational and is not legal or investment advice. It describes how these schemes generally operate; no assessment of any individual case can be made from a general description. Recovery decisions rest with courts, exchanges and token issuers, and no outcome is guaranteed. Company figures are stated as of 30 July 2026.
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