🛑 Understanding Rug Pulls in Crypto

A rug pull is a type of cryptocurrency scam where developers abruptly withdraw all liquidity or funds from a project, leaving investors with worthless tokens. This typically occurs in decentralized finance (DeFi) projects or meme coins, where liquidity pools are essential for trading.

📉 Notorious Rug Pulls in Crypto History

OneCoin
Launched in 2014 by Ruja Ignatova, OneCoin was marketed as a revolutionary cryptocurrency. However, it lacked a real blockchain and operated as a Ponzi scheme, defrauding investors of over $4 billion. Ignatova disappeared in 2017 and remains on the FBI's most-wanted list.

Thodex
In 2021, Turkish exchange Thodex vanished with approximately $2 billion in user funds. Founder Faruk Fatih Özer claimed a cyberattack but fled the country. He was later apprehended in Albania and extradited to Turkey.

$Libra
In February 2025, Argentine President Javier Milei promoted the $Libra token, causing its price to surge. However, the token's value plummeted after insiders sold off their holdings, leading to significant losses for investors.
$ETH