Overview
An exit scam occurs when a seemingly legitimate cryptocurrency project or exchange stops operating and the founders vanish with all the user funds. This can happen after an ICO or after a platform has been operating for years.
Notable Examples
- BitConnect: A high-yield investment program that turned out to be a Ponzi scheme.
- QuadrigaCX: A Canadian exchange that collapsed after the founder allegedly died, taking the private keys to the grave.
Red Flags
- Promises of guaranteed high returns.
- Anonymous or 'fake' team members.
- Lack of transparency regarding fund management.