# Exit Scam

> When the people running a project disappear with users' money.

Canonical URL: https://fudfomo.co/glossary/exit-scam
Source: What The Block! Dictionary v1.0 (last updated 2026-04-25), browsable at https://wtb.fudfomo.co.

## Definition

An exit scam is the moment a fraudulent operator vanishes with customer funds. It can apply to a fake exchange that stops withdrawals, a token team that drains a treasury, or any project that collected money on a promise it never planned to keep.

Exit scams are easier to pull off when users have not done basic checks on the team and when funds were not held in transparent or audited custody.

## Regulatory context

Many exit scams cross borders, which makes recovery slow and partial at best. Reporting to local authorities is still worth doing.

## Related terms

- [Rug Pull](https://fudfomo.co/glossary/rug-pull): A scam where the creators of a token suddenly drain liquidity or sell their stash, leaving holders with worthless tokens.
- [Custody](https://fudfomo.co/glossary/custody): Who holds your crypto and the keys to it. Self-custody means you do, custodial means a company does.
- [KYC](https://fudfomo.co/glossary/kyc): Know Your Customer. The identity checks an exchange runs before letting you trade.

## See the full catalogue

What The Block! covers more than 2,000 plain-English crypto terms, delivered as embeddable hover-state tooltips for crypto exchanges. https://wtb.fudfomo.co