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 market resulting in a net transfer of public funds to a cartel of insiders.
The anonomous nature of many defi projects means these types of fraud are frequent and difficult to trace or prosecute by law enforcment.
- Petro, Louis W., James P. Martin, Adam A. Wadecki, and Harry Cendrowski. The handbook of fraud deterrence. John Wiley & Sons, 2007.